Nation’s Leading Banking and Credit Union Associations Urge Congress: Keep Durbin-Marshall Interchange Amendments Out of National Defense Bill

WASHINGTON, DC – In a unified call to action, the nation’s leading banking and credit union trade associations have urged Congress to reject the Durbin-Marshall interchange legislation—formally known as the Credit Card Competition Act—and a related “commissary interchange” study amendment from the Fiscal Year 2026 National Defense Authorization Act (NDAA).

In a letter sent today to Majority Leader Thune, Minority Leader Schumer, Speaker Johnson, and Minority Leader Jeffries, the coalition — including the American Bankers Association, America’s Credit Unions, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Defense Credit Union Council, Electronic Payments Coalition, and Independent Community Bankers of America — made clear that these controversial measures would hurt consumers, weaken community lenders, and even jeopardize financial security for military families.

“Shoehorning such a contentious banking mandate into a defense authorization bill is a dangerous legislative shortcut that could distract from genuine national security issues. Our servicemembers and their families deserve better than to become collateral damage in a corporate lobbying fight over interchange fees. For these reasons, we urge you to keep these non-germane provisions out of the NDAA and maintain a clean focus on true defense matters,” the letter stated.

Why This Matters

Harm to Consumers: The Durbin-Marshall proposal would strip banks and credit unions of the ability to route transactions through secure networks, heightening fraud risks and potentially eliminating popular credit card rewards, cash-back programs, and zero-fee accounts that millions of Americans rely on. History shows that retailers rarely pass interchange savings on to consumers — leaving families to face higher fees and fewer benefits.

“After debit interchange fees were capped by the Durbin Amendment in 2010, consumers saw little to no savings at the checkout. The Federal Reserve found that the vast majority of merchants did not pass along interchange savings to customers – about 75% of retailers made no price changes, and roughly one in four increased prices instead,” the group wrote. “At the same time, many banks were forced to cut back on free checking and debit rewards programs to make up for lost revenue.”

“One study found that debit card reward programs essentially vanished for a large portion of consumers after the Durbin controls. Free checking accounts also became far less available, with banks subject to the cap 35% less likely to offer free checking and instead raising monthly fees and balance requirements. We fear the proposed credit card routing mandate would repeat these failures, enriching a few large retail chains while ordinary Americans receive none of the promised price relief.”

Damage to Community Banks and Credit Unions: Limiting interchange would likely result in higher costs for local customers, reduced lending power, and fraud protections, all while benefiting large retailers like Amazon and Walmart. 

Risks to Military Families: Credit unions and military banks reinvest interchange revenue into special products tailored for servicemembers, including low-interest cards, deployment-relief loans, and emergency assistance programs. The Durbin-Marshall plan would threaten these lifelines, undercutting the Department of Defense’s own emphasis on financial readiness as a pillar of military readiness.

Misguided Commissary Study: The proposed “study” of interchange fees at commissaries is a thinly veiled attempt to revive failed credit card routing mandates. In reality, commissary fees are already absorbed by the federal government, not passed on to veterans. The amendment would not reduce grocery costs for military families — but it would erode payment security, compromise veteran privacy, and deliver a financial win for big-box retailers.

The coalition warned that these amendments are “exploitation dressed up as reform” — exploiting servicemembers and veterans as leverage in a retailer-led crusade to slash interchange costs.

“They are divisive, stand-alone banking policy changes that should be considered on their own merits (if at all), not tacked onto a defense authorization bill that is essential to our national security.”

The associations urge Congress to reject both the Credit Card Competition Act and the commissary interchange study from the final NDAA and keep defense legislation focused squarely on its true mission: protecting national security and supporting America’s armed forces.