WASHINGTON--Monday, the Defense Credit Union Council and the Association of Military Banks of America (AMBA) issued a joint letter to U.S. House and Senate leadership expressing strong, unified opposition to the so-called Credit Card Competition Act (CCCA), warning that the legislation would harm service members, veterans, and the financial institutions that serve military communities.
“At its core, this is a policy choice about who bears the cost,” stated Anthony Hernandez, DCUC president/CEO, Ret. U.S. Air Force Colonel. “The Credit Card Competition Act delivers guaranteed gains to large retailers all while undermining the financial protections our men and women in uniform depend on every day.”
“Financial readiness is not abstract; it directly affects a service member’s ability to focus, deploy, and perform,” said Omuso George, AMBA president/CEO, Ret. U.S. Army Brigadier General. “The Credit Card Competition Act puts retailer profits ahead of the secure, reliable financial systems military families rely on, and policymakers must recognize the real consequences of that choice.”
In the letter addressed to Speaker Mike Johnson, House Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune, and Senate Minority Leader Chuck Schumer, DCUC and AMBA urged lawmakers to reject the bill and prevent its inclusion in any must-pass legislative package. While banks and credit unions often differ on policy matters, both organizations emphasized that the CCCA presents a rare case of full alignment across the military financial services sector.
Both military banks and defense credit unions are known for offering a multitude of personalized services such as low-interest, no-annual-fee credit cards, deployment-relief loans, debt consolidation plans, financial counseling, and emergency assistance, DCUC noted.
“By slashing that revenue and imposing rigid routing mandates, the CCCA would directly threaten these vital programs and benefits that military households depend on,” the organizations said.
DCUC and AMBA cautioned that the bill would disproportionately harm smaller, on-base credit unions and military-serving banks operating on thin margins, potentially forcing them to reduce credit availability, tighten lending standards, or eliminate popular card benefits. Junior enlisted service members and military spouses, who often face irregular pay, frequent relocations, and deployment-related expenses, would be among the most impacted.
The organizations also raised serious concerns about increased fraud and cybersecurity risks, noting that the CCCA would strip issuers of the ability to route transactions over the most secure payment networks. This could expose military cardholders, including those deployed overseas, to greater vulnerability at a time when financial readiness is critical to mission readiness.
DCUC and AMBA warned that the legislation would primarily benefit large retailers, not consumers. Citing past debit interchange caps under the Durbin Amendment, the groups noted that promised savings were rarely passed on to shoppers, while consumers instead experienced reduced access to free checking, diminished rewards programs, and fewer low-cost banking options.
“The CCCA is being driven by big-box retailers and e-commerce giants seeking higher profit margins, not by military families or consumers,” the organizations added. “There is no guarantee that any savings would be passed on at the register, while the harm to military financial services would be immediate and real.”
The joint letter reinforced that both organizations share a mission to support the financial well-being of service members, veterans, and their families. Together, DCUC and AMBA represent hundreds of financial institutions serving millions of military communities nationwide.
“Service members and their families deserve better than to become collateral damage in a corporate lobbying fight,” the organizations stressed. “We urge Congress to reject the Credit Card Competition Act and work instead on solutions that promote competition, protect consumers, and preserve the financial readiness of our military communities.”