Washington, D.C. (April 8, 2024) — With Congress back in Washington following a two-week district work period, new polling from the Independent Community Bankers of America (ICBA) shows Americans say legislation to create credit card routing mandates would harm consumers.
“ICBA and the nation’s community banks strongly oppose controversial credit card legislation that would reduce access to credit card services in local communities, weaken cybersecurity protections, and end popular credit card rewards programs solely to benefit large retailers like Amazon and Walmart,” ICBA President and CEO Rebeca Romero Rainey said. “Our latest polling shows Americans are likewise concerned about the risks of new credit card routing mandates.”
The Credit Card Competition Act (S. 1838/H.R. 3881), introduced by Sens. Richard Durbin (D-Ill.) and Roger Marshall (R-Kan.), would allow large merchants to route credit card transactions on the network that is least costly to them. This bill would require credit card networks and issuers—including Main Street community banks—to change the technology that is currently used to conduct credit transactions.
According to recent ICBA polling of U.S. adults conducted by Morning Consult:
Americans Say Credit Card Networks Would Be Less Secure
Two-third of adults (66%) — including 72% of Democrats and 67% of Republicans — say big-box stores would likely choose cheaper, less secure networks to process credit card transactions.
Americans Say the Credit Card Policy Change Is Risky
More than 7 in 10 adults (71%) say changing the technology that is used to conduct credit transactions at the register is risky.
Americans Say They Wouldn’t Benefit from the Policy Change
Nearly 7 in 10 adults (69%) say merchants would likely keep their cost savings for themselves.
A majority of adults — including 54% of Democrats and 60% of Republicans — say consumers are likely to bear the costs of the technology changes.
Most adults say these changes would have a negative effect on inflation (56%) and the economy (55%).
With a recent University of Miami study finding that the Durbin-Marshall bill would disproportionately benefit the nation’s top five businesses while putting small retailers at a further competitive disadvantage, ICBA and community bankers continue calling on every member of Congress to oppose this anti-consumer and anti-community bank legislation.
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.