The Sconi

The Mid-Size Bank Coalition of America has expressed its opposition to the Durbin-Marshall Credit Card Competition Act. This announcement was made in a letter addressed to the Senate Judiciary Committee.

According to Congress.gov, the Durbin-Marshall Credit Card Competition Act (S. 1838) proposes that card-issuing banks with assets exceeding $100 billion should facilitate transactions over at least two unaffiliated credit card networks. Proponents of the bill argue it would enhance network competition, while opponents raise concerns about potential increases in fraud risk, diminished rewards, and financial pressure on community banks.

The Bank Policy Institute reported that the Credit Card Competition Act of 2023 could reduce funding available for fraud prevention, credit access, and customer rewards programs. The Institute states that similar regulations under the original Durbin Amendment led to increased consumer fees and reduced services, particularly affecting lower-income individuals. Financial institutions warn that the proposed credit card legislation might replicate these outcomes on a larger scale.

In a statement included in Wisconsin State Treasurer John Leiber’s July 2023 mid-year campaign finance report, it is noted that the Durbin-Marshall Credit Card Competition Act could diminish financial benefits for Wisconsin consumers by eliminating credit card rewards and increasing banking costs. Leiber said that the legislation would negatively impact local economies by redirecting savings from consumers and small financial institutions to large national retailers. He also expressed concern that the bill could disrupt the existing payments infrastructure relied upon by individuals and small businesses across Wisconsin.

According to the Mid-Size Bank Coalition of America, it represents banks with assets ranging from $10 billion to $100 billion across the United States. The coalition advocates for policies promoting a healthy and diverse banking system, enabling its member banks to support local communities and drive economic growth. Its members operate in nearly every state and provide a wide range of financial services to businesses and consumers.