![](https://www.americascreditunions.org/wp-content/uploads/2024/02/Interchange6Points.png)
New interchange research shows legislative efforts to disrupt the “safe, secure and well-functioning credit card system” with the Big Box Bailout bill would hurt people that bill sponsors claim it would benefit, America’s Credit Unions wrote to members of Congress Wednesday.
“If Congress passes this flawed interchange bill, there are six distinct consequences to American families and small businesses,” wrote America’s Credit Unions’ Greg Mesack and Jason Stverak. “All while helping the nation’s largest big box retailers make more profits off the people in your state and communities.”
According to the research included in the message, the bill would:
- limit consumers’ access to unsecured credit via safe financial institutions like credit unions, leaving more Americans financially vulnerable to alternatives like payday lenders;
- escalate annual fees on credit cards, creating barriers to credit access for people at all economic levels, including those who need access most to make ends meet;
- reduce fraud protections by fragmenting current fraud detection systems and increasing the cost for card issuers;
- exacerbate existing pressures on community institutions’ card programs as the cost of processing a card transaction currently exceeds interchange income;
- cut many merchants’ operating costs, WITHOUT any requirements to pass on their savings to consumers; and
- negatively impact the economy, as consumers spend less in the face of tighter credit card policies and lower credit limits.
Glenn Grossman, who did the research for Cornerstone Advisors, is featured in both the short and long form videos released by America’s Credit Unions to highlight the negative impacts of the legislation.
The message is the latest pushback against the Big Box Bailout bill and other attempts to change the current interchange system, with further outreach planned leading up to the 2024 Governmental Affairs Conference in Washington, D.C., March 3-7. More information is also available on Protect Interchange.