The Defense Credit Union Council (DCUC), representing more than 200 defense-affiliated credit unions and over 40 million members, including active-duty servicemembers, Guard and Reserve members, veterans, Department of Defense civilians, and military families, has called on the House and Senate Armed Services Committees to reject efforts to include interchange fee provisions in the Fiscal Year 2026 National Defense Authorization Act (NDAA).
In letters sent to Chairman Rogers, Ranking Member Smith, Chairman Wicker, and Ranking Member Reed, DCUC strongly opposed the inclusion of the Durbin-Marshall interchange proposal (Credit Card Competition Act) and a related commissary interchange fee study, warning that these measures are unrelated to national defense and would have severe unintended consequences for consumers, small financial institutions, and military families.
“The NDAA must remain focused on national security and troop readiness—not serve as a vehicle for unrelated financial regulations that primarily benefit large retail corporations at the expense of those who serve,” says Anthony Hernandez, DCUC President/CEO.
Key Concerns
- Harm to Consumers: The proposed credit card routing mandate would undermine secure payment systems, increase fraud risks, and reduce popular consumer benefits like rewards, cash-back programs, and zero-liability fraud protection. History has shown that past interchange caps failed to lower costs for consumers, while financial institutions were forced to cut back on services.
- Damage to Community Financial Institutions: The Durbin-Marshall provisions would disproportionately hurt community lenders, forcing higher fees, reduced access to credit, and fewer consumer options—all while enriching the largest retail chains.
- Risks to Military Members and Families: Credit unions have historically been known to offer unique programs tailored to servicemembers, such as deployment loans, emergency assistance, and low-rate credit cards. The current interchange proposals would weaken financial protections, reduce access to affordable credit, and undermine DoD’s emphasis on financial readiness—a recognized pillar of military readiness.
- Misguided Commissary Fee Study: The proposed study of interchange fees at commissaries is misleading. Current law ensures veterans and military families are not directly charged these fees, with costs already reimbursed by the federal government. DCUC warns that pursuing such a study would needlessly compromise military families’ privacy and open the door to misguided proposals such as government-run credit cards, which could expose servicemembers to reduced consumer protections and harsher debt collection practices.
Keeping the NDAA Focused on National Defense
DCUC stressed that these provisions are divisive, non-germane banking policies that should be debated through regular order, not attached to must-pass defense legislation.
“Our servicemembers, veterans, and their families should never become collateral damage in a retailer-led lobbying fight over interchange fees,” says Jason Stverak, DCUC Chief Advocacy Officer. “We urge Armed Services Committee leaders to reject these harmful amendments and keep the NDAA centered on its true mission—protecting our national security and supporting our troops.”
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.