"Independent networks usually charge lower fees and, according to the Federal Reserve, have less fraud, meaning the legislation could lead to both lower costs and better security," it said.

The bill only applies to financial institutions with more than $100 billion in assets, so the only credit union affected is Navy Federal Credit Union, Vienna, Va. ($166 billion in assets, 12.6 million members). As of March 31, it held $22 billion in credit cards, up 18.2% from a year earlier and accounting for a third of all balances held by credit unions.

CUNA and NAFCU have put opposition to the interchange bills high on their agendas, and both issued condemnations on Wednesday.

NAFCU President/CEO Dan Berger said he was disappointed the senators had re-introduced the bill.

Dan Berger

"Expanding interchange price controls and routing mandates to credit cards is bad policy, pushed by big box retailers who are looking to pad their bottom line," Berger said. "Contrary to merchants' deceptive claims, data shows consumers end up paying more across the board — from higher prices of goods, to more expensive card products at their financial institutions, and fewer rewards and benefits on their card purchases."

CUNA President/CEO Jim Nussle said big retailers are pushing for financial breaks that would risk both data security and access to credit for consumers and small business owners.

Jim Nussle

"This bill would allow these large merchants to use the cheapest credit card processing option, with no requirement to keep consumers' data safe or return savings back to them," Nussle said.

"Interchange is the cost of doing business," he said. "Merchants like Target and Walmart reap the benefits of credit card usage with immediate payments, protection from fraud, and typically larger purchases by consumers – but don't want to pay the cost of accepting credit cards."

The sponsors of the Credit Card Competition Act of 2023 bill the sponsors of last year's bill that died with the session: U.S. Sens. Roger Marshall (R-Md.) and Majority Whip Dick Durbin (D-Ill.). But it also includes new sponsors: Sens. Peter Welch (D-Vt.), and Sen. J.D. Vance (R-Ohio).

Vance said the bill would increase competition and drive down prices for consumers.

Sen. J.D. Vance

"Working families all over Ohio are getting crushed by inflation every time they go to the grocery store or fill up on gas," Vance said. "Meanwhile, two massive companies have a stranglehold on credit card swipe fees and are increasing the costs of these everyday essentials."