DCUC Joins EPC and ACU in Opposition of Proposed Interchange Legislation

​WASHINGTON, D.C. – Yesterday, the Defense Credit Union Council (DCUC) participated in key stakeholder meetings alongside America's Credit Unions (ACU) organized by the Electronic Payments Coalition (EPC) to oppose legislative efforts proposing to alter the interchange system in the new Congress. DCUC has actively countered repeated attempts by Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) to introduce legislation or studies imposing new credit card routing mandates, which would harm consumers and jeopardize the financial readiness of servicemembers and veterans.

DCUC also highlights how, if enacted, this legislation would threaten credit unions’ ability to offer affordable credit, lower rates, or deployment-friendly services, and leave servicemembers vulnerable to predatory practices.

DCUC celebrates the defeat of similar proposals in the previous Congress, including attempts to attach this and similar CCCA-like language to must-pass legislation as seen recently with the FY 2025 NDAA.

The EPC’s newly published research highlights the potential economic fallout of the Durbin-Marshall proposal:

• Economic Impact: $227 billion in lost economic output over four years and 156,000 job losses.
• Consumer Spending: A projected $80 billion decline due to reduced credit card rewards and benefits.
• Regional Vulnerability: Tourism-dependent areas like Miami, Orlando, Las Vegas, and Colorado ski towns face severe risks, with Vail Valley alone projected to lose over $200 million.
• Travel & Tourism Sector: Credit card rewards programs contribute significantly, with $23 billion in economic activity generated by airline credit card miles in 2022 alone.

Oxford Economics used data from the EPC and analyzed impacts based on previous debit card regulations that cut interchange rates by 50%. Their model considers first- and second-order economic effects such as reduced consumer spending, and predicts ripple across sectors including retail, transport, health, arts, and hotels. Notably, no other country has imposed similar regulations on credit card interchange fees, bringing unprecedented risks for the U.S. payments industry.

"The Durbin-Marshall bill poses significant economic risks, particularly to tourism-heavy regions and small businesses, while also threatening consumer spending and job growth. The proposed legislation would not only trigger avoidable economic challenges but also bring long-term repercussions for America's financial ecosystem and consumers,” says Jason Stverak, DCUC Chief Advocacy Officer, after attending yesterday’s meetings. “We will highlight the EPC's findings as part of our continued opposition to CCCA and similar interchange proposals, and appreciate this opportunity to collaboratively advocate on this pressing issue.”

For more information, please contact Jason Stverak at [email protected] and visit dcuc.org/advocacy.