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Home Interchange Legislation: Write Your Lawmakers; Urge Them to Oppose H.R.3881 and S.1838

Interchange Legislation: Write Your Lawmakers; Urge Them to Oppose H.R.3881 and S.1838

Authored By: Lewis Wood on 6/8/2023

Write Your LawmakersWe now have bill numbers for the two recently introduced interchange measures we are opposing -- H.R.3881 and S.1838. Both bills were introduced yesterday.

Credit unions are urged to mobilize their staff, officials and members in opposition to the measures.

Use the League Action Center to email your lawmakers quickly and easily!

The legislation would cause harm to both consumers and financial institutions, compromise data security, and completely upend the way credit card transactions are processed.

This latest version of the Credit Card Competition Act is very similar to the legislation introduced last year. See the information below on how this year's version differs. Last year's version of the CCCA did not advance to a vote, owing in large measure to the fierce opposition from credit unions and banks.

In meetings this year with Virginia's Congressional Delegation, we've noted our opposition to the measure, anticipating its reintroduction at some point.

"We believe that government intervention in credit card interchange will bring harmful disruption to a functioning marketplace," said League Chief Advocacy Officer JT Blau.

Changes in This Session's Bill

  1. Adds that routing cannot be limited to two networks if any of the networks are included on the list of “designated national security risks” under subparagraph D.
  1. Requires the list of “designated national security risks” to be updated every two years.

Under the CCCA, the Federal Reserve would issue regulations requiring credit card issuers with more than $100B in assets to include at least two unaffiliated networks on which an electronic credit transaction can be processed. Additionally, the two networks cannot be the networks holding the two largest market shares of credit cards issued in the U.S. by licensed members of such networks as determined by the Board at the time the regulations are issued.

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