ICBA-opposed legislation to impose credit card routing restrictions would cost credit card users $11 billion in annual rewards, according to a new report from the Electronic Payments Coalition.
Details: In a new explainer brief, the EPC—of which ICBA is a member—spotlights historical data on the impact of interchange price caps and routing mandates in other countries. The brief says interchange caps cost Australia $800 million in rewards and another $1.5 billion in Canada while limiting or eliminating rewards programs in the European Union.
Pending Legislation: While the Senate last month passed the National Defense Authorization Act without an amendment to advance the Credit Card Competition Act (S. 1838/H.R. 3881), Sens. Richard Durbin (D-Ill.) and Roger Marshall (R-Kan.) continue working to pass the bill, which would allow merchants to process credit card transactions based solely on which network offers them the lowest cost.
Ongoing Grassroots: ICBA continues calling on community bankers to use its Be Heard grassroots action center to urge their lawmakers to oppose the policy change. ICBA has also circulated new polling conducted by Morning Consult that found two-thirds of voters say requiring a change to credit card transaction technology is risky.
