Update On The Credit Card Competition Act

Congress left Washington, D.C. last week for its month-long August recess without a vote on the Credit Card Competition Act (CCCA). Senators Richard Durbin (D-IL) and Roger Marshall (R-KS) were pushing to include as an amendment to the Senate’s National Defense Authorization Act (NDAA). This legislation was introduced in the U.S. House and Senate to simply require credit cards issued by the largest U.S. banks have at least two unaffiliated card payment networks available to process transactions.

Senators Durbin and Marshall have been assured from Senate leadership that they would receive a vote on their bill later this year. The banks are using every single tool possible to prevent this important legislation from getting to the floor and threatening that credit card rewards will disappear. In a new research paper released last week, global payments consulting firm CMSPI estimated that credit card rewards would be reduced by less than one-tenth of 1 percent “at most” if the legislation becomes law.

Congress will return to Capitol Hill after Labor Day. The PPA encourages members to continue to reach out to legislators over August recess when members will be at home to let them know that you want them to cosponsor/support this important legislation. A link to the NACS grassroot advocacy platform can be found here. The PPA will also be working with members to coordinate key congressional meetings over the next month.