Hawkeye Reporter

Justin Hupfer, CEO of PolicyWorks, expressed concerns that reducing interchange fees under the proposed Credit Card Competition Act would put pressure on card programs and limit credit access for individuals with low or no credit history. He made this statement during an interview on April 10.

"Ultimately, the bill will reduce what merchants pay in interchange fees," said Hupfer, Vice President of Government Affairs. "These fees are their fair share of supporting the costs associated with maintaining a global electronic payment network. Credit unions and banks bear the brunt of card fraud. It will be more difficult for persons with challenging credit histories to obtain a credit card."

According to Payments Dive, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) reintroduced the Credit Card Competition Act in February 2025. The legislation aims to require credit card-issuing banks to offer at least two network options for transaction processing. The bill's objective is to reduce Visa and Mastercard’s market dominance and lower interchange fees paid by merchants. Banking groups, as reported by the Bank Policy Institute, argue that the bill could erode credit card rewards and restrict credit access, particularly affecting small financial institutions and consumers.

A report from the Common Sense Institute in 2023 highlighted that U.S. merchants paid $224.3 billion in card-related fees, with $143 billion stemming from interchange fees alone. Of these fees, 74% were attributed to credit card transactions and 26% to debit card transactions. Additionally, TruStage noted that in early 2024, interchange revenue—alongside fees and mortgage-related gains—comprised 28% of total income for credit unions, indicating the importance of these fees to their financial models.

The Center for Data Innovation reported that following the 2010 Durbin Amendment which capped debit card interchange fees, banks increased other fees and eliminated free checking accounts. This led to a significant drop in free account availability by 50%, contributing to about one million Americans becoming unbanked—a situation disproportionately affecting low-income communities. America's Credit Unions said in a March 2025 letter that similar outcomes could result from the Credit Card Competition Act, potentially limiting credit card access for consumers with lower credit scores.

Affiliates Management Company reports that Justin Hupfer currently serves as CEO of PolicyWorks LLC and Senior Vice President at AMC, where he oversees strategy, advocacy, and compliance. His previous roles include Vice President of Government Affairs for the Iowa Credit Union League, where he managed state and federal lobbying efforts. Hupfer has built a career focused on financial policy and credit union advocacy.