By Rose Oswald Poels
In early June, the Credit Card Competition Act (CCCA) was reintroduced in Congress by Sens. Dick Durbin (D-Ill.), Roger Marshall (R-Kan.), Peter Welch (D-Vt.), and J.D. Vance (R-Ohio). The legislation, which was first introduced last session, would force card-issuing financial institutions to choose among routing networks set by the Federal Reserve, rather than choose networks that may offer the best customer experience and security.
As I alerted the membership in the June 13 Wisconsin Banker Daily e-publication, the Wisconsin Bankers Association (WBA) recently became aware that — in addition to Lance Gooden (D-Texas), Zoe Lofgren (D-Calif.), and Jefferson Van Drew (R-N.J.) — Rep. Tom Tiffany (Wis.-07) had signed on as a co-sponsor.
This disappointing news comes after two groups of Wisconsin bankers met with his staff in Washington, D.C. during WBA’s annual Spring Washington trips held in March and May 2023. As various merchants and retailers — notably Kwik Trip along with big box retailers — lobby for the implementation of CCCA, WBA staff and members speak in opposition of the interchange legislation and continue to share the direct, negative impact such a ruling would have on consumer card reward programs and on the industry’s income. If the CCCA were to be implemented, it could result in the end of popular card reward programs, limit community banks’ credit card offerings, and expose credit cards to data security risks.
As we move forward, I encourage the entirety of the WBA membership to share their perspective on the CCCA — especially those in the 7th District. Rep. Tiffany’s Wausau district office phone number is 715-298-9344, and his Washington office number is 202-225-3365. The American Bankers Association (ABA) and the Independent Community Bankers of America (ICBA) also have digital grassroots campaigns available to all bankers. The messages you and your team send are vital in reminding elected officials of the harm legislation such as the CCCA could cause. Thank you to those bankers who have already joined me in sharing your disappointments with Rep. Tiffany.