Albuquerque, NM (May 8, 2026) |
The Credit Union Association of New Mexico, in partnership with the Small Business Payments Alliance, hosted a roundtable with credit union leaders, small business owners, and congressional staff from the offices of U.S. Senators Martin Heinrich and Ben Ray Luján to share the negative impacts of the federal Credit Card Competition Act on community-based financial institutions and local businesses
When a consumer uses a credit or debit card, a small fee known as interchange helps fund the systems that make those transactions possible. That includes fraud monitoring, cybersecurity protections, and the ability to securely and quickly move money between accounts.
The proposed Credit Card Competition Act (CCCA) would change how those transactions are processed by requiring certain credit cards to be enabled on at least two unaffiliated networks, allowing merchants to route payments through the network they choose – regardless of the risk from lower fraud and cybersecurity measures of unaffiliated networks.
“Credit unions are focused on protecting their members and ensuring they have access to safe, reliable financial services,” said Melia D. Heimbuck, President and CEO of the Credit Union Association of New Mexico. “Interchange supports the security and infrastructure behind everyday transactions. Proposals like the Credit Card Competition Act risk increasing fraud, reducing consumer benefits, and limiting access to credit for the people who need it most.”
Participant credit unions, including First Financial, Nusenda, Rio Grande, Sunward, and Zia, discussed concerns that changes would disrupt the current system, and likely weaken security protections while also reducing the resources available to prevent fraud.
Small business owners shared their perspectives on serving customers and managing payments, noting the importance of a system that is secure, consistent, and built to protect both businesses and consumers.
“The Credit Card Competition Act as currently written will help big-box stores, not New Mexico-based small businesses,” said Ashley Fathergill, owner of Upside Goods. “Local businesses and New Mexico consumers need a safe, fair system that minimizes costs while maximizing security.”
Most importantly, participants raised concerns about the broader impact on consumers. Changes to the current system could reduce availability of credit, especially for low-income households and underserved communities who often rely on credit cards to make ends meet.
Also, as losses due to fraud go up, lenders, including credit unions, will be forced to tighten credit options. Tighter credit options reduce credit availability. A reduction in credit availability will be felt most by those who are the most reliant on the credit in the first place.
The discussion also highlighted concerns about how the changes would be felt across the business community. Intended to reshape the payments landscape, participants noted that the largest retailers are most likely to benefit, while small businesses could be put at a competitive disadvantage. Research indicates that most potential savings would go to merchants with more than $500 million in annual sales, while small businesses could face reduced access to credit and fewer customer incentives tied to card use.
The roundtable provided an opportunity for congressional staff to hear directly from New Mexicans about how federal policy proposals could impact local communities.
The Credit Union Association of New Mexico will continue working with policymakers and partners to support a payments system that prioritizes security, access to credit, and the financial well-being of New Mexico communities.