WASHINGTON, D.C (May 12, 2025) |
Yesterday evening, the Defense Credit Union Council (DCUC) sent a letter to Representative Zack Fields, Chair of the Alaska House Labor & Commerce Committee, urging the Legislature reject the inclusion of controversial interchange language from HB 171 into SB 79.
“While we understand the desire to address payment systems and transparency, the proposed interchange provision threatens to impose serious harm on credit unions, small financial institutions, and the very consumers it claims to help—particularly those who serve our nation in uniform. This legislation would effectively mirror the failed federal Durbin Amendment experiment, the consequences of which have been well-documented: higher costs for consumers, the elimination of rewards programs, reduced access to affordable credit, and a profound disruption to low-cost debit card services that many Alaskans rely on,” said Jason Stverak, DCUC Chief Advocacy Officer.
The proposed interchange language closely mirrors the federal Durbin Amendment, which has failed to deliver on its promises. Instead of passing savings to consumers, retailers kept the gains—while consumers lost access to free checking, rewards programs, and affordable credit.
Stverak shared that a 2023 economic report found Durbin’s price controls reduced average annual debit card benefits for consumers by $106. The burden fell hardest on credit unions and community banks, particularly those serving rural areas.
Alaska’s remote geography and underserved populations make these impacts even more severe. Defense credit unions are often the only accessible financial institutions for service members and their families in the state. Interchange revenue helps fund essential services like zero-interest emergency loans, early pay programs, free financial counseling, and fraud prevention and cybersecurity.
“Interchange fees aren’t corporate profits—they fund secure, affordable financial services in communities big banks overlook,” Stverak adds. “Slashing this revenue puts military financial readiness at risk—and by extension, national security.”
DCUC also questioned the rationale behind the proposal, noting that Alaska’s credit unions and community banks already provide low-cost financial products designed for the state’s unique needs.
DCUC calls on Alaska lawmakers to remove the interchange language from SB 79, cautioning that its inclusion would disrupt financial services to rural and military communities; undermine funding for programs that support underserved populations; and shift corporate retail costs onto working families and credit union members
“This is not the time to experiment with policies that jeopardize access to affordable, secure financial services—especially for those who serve our country,” says Anthony Hernandez, DCUC President/CEO. “We urge legislators to stand with Alaska’s military families and reject this provision.”
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.