CUNA’s Nussle responds to senate interchange hearing
WASHINGTON, DC (May 4, 2022) — Credit Union National Association (CUNA) President/CEO Jim Nussle issued the following statement ahead of today’s Senate Judiciary Committee hearing on credit card interchange fees led by Sen. Richard Durbin, D-Ill.
“Today’s hearing is nothing more than an attempt to expand the failed price controls that Dodd-Frank created. Over the past two years, big-box retailers like Walmart and Amazon have seen a $250 billion boost in sales, but they still want Congress to further pad their profit sheets at the expense of consumers’ ability to access credit. America’s not-for-profit credit unions rely on interchange fees to keep consumers—and the merchants they buy from—safe and whole when data thieves and card hackers exploit weak links in the payments system. I hope that Senator Durbin sees that these policies hurt community-focused credit unions and the 130 million members who rely on them to make life work.”
Interchange fees are nominal fees card issuers charge to merchants to support credit card programs, including:
- Providing data security and credit monitoring when bad actors hack merchants’ systems;
- Making merchants and consumers whole when fraudulent purchases are made; and
- Offering low- and no-annual-fee cards to provide consumers with access to credit.
According to recent CUNA polling, lower credit card interchange rates could lead one in seven credit unions to reduce or eliminate their credit card programs altogether.
In a letter sent to the committee ahead of the hearing, CUNA laid out further concerns with the Senate’s approach to credit card interchange.
About Credit Union National Association (CUNA)
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by more than 130 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.