WASHINGTON--As credit unions work to prevent new credit card mandates from moving forward in Congress and fight interchange efforts on the state level, America’s Credit Unions noted it has advocacy resources to help address the issue – including a new “How Interchange Works” graphic.
"Opposition to the Credit Card Competition Act in both the House and Senate is ongoing and America’s Credit Unions remains vigilant in efforts to prevent Durbin-Marshall mandates from being added to other bills moving through Congress. Together with the Illinois Credit Union League (ICUL), America’s Credit Unions is also working to raise awareness about the consequences of the Illinois Interchange Fee Prohibition Act (IFPA). America's Credit Unions, ICUL, and other trades are appealing the recent ruling as part of efforts to overturn the harmful IFPA before it goes into effect July 1," ACU said.
ACU said the resources detail the importance of interchange to the security and ease of electronic payments, concerns with current legislation, and how proposed changes would cost consumers, small businesses, and card issuers. They aim to remind policymakers that the current card payments system:
- Provides access to credit, while changes would mean fewer issuers and less access
- Boosts retailer sales, since consumers spend more when they use credit cards and retailers get secure payments processed quickly
- Keeps information safe, as interchange helps financial institutions cover some fraud prevention and security costs
The graphic, handouts, research and other resources are available under “Interchange/card mandates” in the Resource Library.