WASHINGTON, D.C (May 22, 2025) |
On Monday, the Defense Credit Union Council (DCUC) issued a strong warning to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, urging them to oppose the inclusion of the Credit Card Competition Act (CCCA) in the GENIUS Act or any other legislative package. In a detailed letter, DCUC outlined the bill’s disproportionate and harmful impact on military families, veterans, and the credit unions dedicated to serving them.
In its message to Senate leadership, DCUC emphasized that the CCCA—disguised as a pro competition measure—would impose sweeping routing mandates that strip financial institutions of their ability to choose secure, reliable payment networks. Instead, DCUC stressed the bill would compel credit card issuers to process transactions through potentially less secure, untested, or foreign-controlled networks—posing a threat not just to financial stability, but also to national security.
“The CCCA threatens to weaken financial protections for those who serve our country, all while enriching large retailers that are unlikely to pass savings to consumers,” said Anthony Hernandez, DCUC President/CEO. “For years, we’ve raised concerns about legislation like this. We remain committed to defending the financial well-being of our military and veteran communities.” See DCUC’s position on the CCCA and similar interchange legislation proposals here.
A Direct Threat to Military Readiness
In its letter, DCUC noted that the Department of Defense considers financial readiness a cornerstone of overall military readiness. Proposals like the CCCA that raise costs, reduce fraud protections, or restrict credit access for military families are counterproductive to that mission.
“This isn’t just a fight between Wall Street banks and big-box retailers. It is about cybersecurity, consumer privacy, and protecting the ability of America’s servicemembers and their families to rely on safe, stable, and mission-oriented credit access,” says Jason Stverak, DCUC Chief Advocacy Officer.
DCUC’s letter reminds that defense credit unions—often located on or near military installations—serve junior enlisted personnel, deployed service members, and veterans in
recovery; burdensome compliance mandates from the CCCA would disrupt card programs that offer financial counseling, low-interest loans, and fraud prevention—services vital to the military community’s financial wellness.
“To be clear: the Department of Defense has made financial readiness a core component of military readiness. Any proposal that increases costs, weakens fraud protections, or limits access to credit for military families directly undermines that objective,” DCUC’s letter states.
DCUC added that the legislation could jeopardize the mission of not-for-profit, member-owned credit unions that prioritize service over profit. These institutions are not built to absorb the cost shifts and risks associated with routing mandates that primarily benefit large retail chains.
“If Congress is serious about protecting Main Street, ensuring robust competition, and supporting America’s military families, then it should reject backdoor efforts to attach the CCCA to unrelated legislation,” Stverak states. “The GENIUS Act deserves a clean and focused debate—not to be saddled with divisive, controversial financial policies that were never given a proper committee hearing or markup in the Senate Banking Committee.”
“This is not just a regulatory issue—it’s about protecting the financial lifelines of the men and women who serve, and ensuring their families have trusted institutions to turn to,” adds Hernandez.
DCUC’s Role in Broader Financial Trade Coalition
DCUC continues to actively advocate in opposition of the CCCA, including ongoing joint trade efforts. Yesterday, DCUC joined nine other financial trade organizations —the American Bankers Association, America’s Credit Unions, Association of Military Banks of America, Bank Policy Institute, Consumer Bankers Association, Defense Credit Union Council, Independent Community Bankers of America, Electronic Payments Coalition, Mid-Size Bank Coalition of America, and National Bankers Association—in a letter to Senate leadership, voicing strong collective opposition to the Durbin-Marshall credit card mandate.
The coalition’s letter labeled the CCCA a “poison pill” amendment, warning that the bill has bypassed regular legislative scrutiny and would ultimately reduce consumer choice, increase fraud, and impose disproportionate burdens on small financial institutions.
The groups pointed to academic research showing that nearly all potential savings from the bill would flow to retailers with over $500 million in annual revenue—leaving small businesses and consumers behind.
“The legislation will do nothing to help small businesses – it will only entrench corporate megastores that already have a stranglehold on the retail market,” the associations wrote.
They also referenced Federal Reserve data and real-world consequences from the original Durbin Amendment, which led to price controls that harmed community banks and failed to deliver promised savings to consumers.
“As we saw with the Durbin Amendment, interchange price controls would increase profits of corporate megastores while impairing small financial institutions’ ability to provide competitive products and services to consumers and small businesses by decreasing revenue used for lending and data security while increasing operational costs,” the letter stated. “Federal Reserve data shows that the Durbin Amendment harmed ‘exempted’ community-based institutions. In
short, their work is far too essential in supporting small businesses to jeopardize by substituting government price-setting in place of dynamic market competition.”
The coalition further emphasized that interchange fees fund fraud protections and reward programs. Reducing or eliminating these would hurt all consumers—particularly low-income and minority Americans—who rely on these benefits for everyday financial stability.
“Despite false claims to the contrary, the bill would take away rewards options from lower income Americans who value those rewards benefits, not just wealthy individuals,” the groups noted.
Citing research from Texas A&M University, the coalition warned that fraud losses under the CCCA could double to $20 billion over the next decade.
“The payment card system is convenient, secure, and hassle-free. It protects consumers against fraud, guarantees businesses receive timely payments, funds reward programs like cash back, and powers the American economy, from brick-and-mortar establishments to innovative e-commerce platforms 24 hours a day, seven days a week, 365 days a year,” the letter concludes. “The Durbin Marshall Credit Card Mandate, and any other legislation that intervenes in the credit card market, puts the seamlessness, security and value of consumer electronic payments in jeopardy.”
See yesterday’s joint trades release here. For more information, please see DCUC’s letter and contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.