Hawkeye Reporter

The Bank Policy Institute (BPI) has announced its opposition to the Durbin-Marshall Credit Card Competition Act. This announcement was conveyed in a letter to the Senate Judiciary Committee.

According to Congress.gov, the Durbin-Marshall Credit Card Competition Act (S. 1838) would mandate banks with assets exceeding $100 billion to enable at least two unaffiliated credit card payment networks. The bill aims to foster competition and lower merchant fees, though financial institutions argue it might reduce consumer rewards and compromise transaction security. The legislation was introduced in the U.S. Senate in June 2023.

The BPI reports that the Durbin-Marshall bill could replicate the negative impacts of the original Durbin Amendment, resulting in decreased interchange revenue for community banks and credit unions. BPI states this revenue decline would compel institutions to scale back rewards programs and increase fees, particularly affecting low-income consumers.

Centennial State News reports that a recent economic analysis found that the Durbin-Marshall Credit Card Competition Act could significantly disrupt Colorado’s economy. The study suggests that the bill could cost the state $4.2 billion in economic output and more than 2,800 jobs, with major effects on rural communities and tourism sectors.

According to BPI, it is a nonpartisan public policy, research, and advocacy group representing the largest U.S. banks and their affiliates. BPI members employ nearly two million Americans and provide financing that supports most private-sector economic activity in the country. The institute promotes regulatory and economic policies that support safe, sound, and innovative banking.