Senators Roger Marshall (R-KS) and Dick Durbin (D-IL) have recently introduced S. 4674, legislation expanding government routing mandates to the credit card market.

Over 10 years ago, the Durbin amendment imposed a price cap on interchange revenue financial institutions can receive on debit cards and mandated financial institutions offer at least two networks for routing of debit card transactions.  Rather than save consumers money as promised, merchants pocketed the savings they reaped from the government price cap, while community banks lost a revenue source to support important consumer benefits like free checking and debit rewards. 

Now, this new legislation would impose even more restrictive government mandates on credit card transactions.  Rather than allowing banks to choose networks offering the best customer experience, security, and resiliency, they would be forced to choose among options set by the Federal Reserve. This means banks would be forced to do business with companies that may be less safe and reliable.

This bill would also require banks accept all types of transactions a merchant requests, which would force banks to frequently reissue cards to meet new retailer demands.  Community banks, which tend to have a lower volume of credit card transactions, may be forced to no longer offer credit cards, as their options and negotiating power would be altered by this government intervention into private business decisions.

Write your lawmakers today and urge them to fight against these government mandates. Ask them to oppose S. 4674, the Credit Card Competition Act.