Credit cards
The Defense Credit Union Council (DCUC) and the Association of Military Banks of America (AMBA) urged Congress to reject the Credit Card Competition Act (CCCA), warning the proposal would undermine financial protections relied upon by service members, veterans, and their families.
In a joint letter sent this week to House and Senate leadership, the organizations expressed rare, unified opposition to the legislation, which would mandate new routing requirements for credit card transactions. DCUC and AMBA argued the bill would significantly reduce interchange revenue that helps fund low-cost credit cards, fraud protection and specialized financial programs for military households.
“At its core, this is a policy choice about who bears the cost,” DCUC President/CEO Anthony Hernandez said. “The Credit Card Competition Act delivers guaranteed gains to large retailers all while undermining the financial protections our men and women in uniform depend on every day.”
AMBA President/CEO Omuso George echoed those concerns, noting that financial stability directly affects military readiness. “Financial readiness is not abstract; it directly affects a service member’s ability to focus, deploy and perform,” George said.
The groups warned that smaller, on-base credit unions and military-serving banks, often operating on thin margins, could be forced to scale back popular benefits such as no-annual-fee credit cards, deployment-relief loans, emergency assistance and financial counseling. Junior enlisted members and military spouses, who face frequent relocations and irregular expenses, would be among those most affected.
DCUC and AMBA also raised alarms about increased fraud and cybersecurity risks, arguing the bill could limit issuers’ ability to route transactions over the most secure payment networks, including for service members deployed overseas.
The organizations urged lawmakers to block the CCCA from inclusion in any must-pass legislation, stressing that the bill would primarily benefit large retailers while offering no guarantee of savings for consumers.
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