ICBA op-ed: Durbin-Marshall credit card restrictions would harm consumers

A new op-ed from ICBA community banker Sarah Getzlaff says community bank credit card programs that provide local customer service, reward programs, and fair terms are under threat from legislation designed to benefit big-box retailers.

Background: The ICBA-opposed Credit Card Competition Act (S. 3623; H.R. 7035) would require certain financial institutions to offer merchants at least two networks to process credit cards, at least one of which cannot be owned by Visa or Mastercard—allowing merchants to process credit card transactions based solely on which network offers them the lowest cost.

Details: In RealClear Markets, Getzlaff—CEO of Security First Bank of North Dakota in Bismarck, N.D., and chairman of ICBA’s Bank Operations Committee—says:

• The recently reintroduced legislation from Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.) would allow retail giants to reap substantial financial gains at the expense of consumers and community banks.

• Durbin-Marshall would hand over the security of the nation’s credit card system to merchants, which are not required to meet the same rigorous data security, fair lending, and privacy standards that apply to highly regulated community banks.

Recent ICBA Advocacy:

• ICBA and other groups last month sent a letter to Congress reiterating strong opposition to the Credit Card Competition Act or any other expansion of the Durbin Amendment.

• In a previous letter to Congress and joint press release, ICBA and other groups urged Congress to reject the CCCA legislation in any form.

READ THE OP-ED