Big Box Bailout bill would put credit card market in jeopardy

Legislation placing government price controls on credit card interchange fees would harm consumers, small businesses, and financial institutions, America’s Credit Unions and other organizations wrote in advance of the expected reintroduction this week of the Durbin-Marshall “big box bailout bill.”

The organizations cite a 2024 research paper that found small businesses would be put “at a further competitive disadvantage” to large corporate megastores if the Durbin-Marshall bill were to become law, estimating that almost all of those savings will accrue to retailers with $500 million or more in annual sales, with little going to small businesses.”

It adds the Congressional Research Service released a report noting “it is not clear whether retailers would pass interchange savings on to consumers’ and ‘might face higher incidences of fraud.”

America’s Credit Unions shared research with policymakers last Congress indicating that the bill would have several direct consequences for consumers, and a majority of small businesses oppose it.