The American Bankers Association signed up with 9 other associations today in opposing an effort to connect the Credit Card Competition Act to a must-pass military costs costs, stating the relocation would rob military households of their access to safe small-dollar credit alternatives and card benefits.
The CCCA was reestablished in the Senate and House in June after its backers stopped working in 2015 to protect its passage, thanks to the efforts of lenders and other stakeholders. Supporters, consisting of box merchants, are working to place language from the CCCA into this year’s significant defense costs costs, the National Defense Authorization Act, along with required a research study of credit and debit card charges.
“These non-germane amendments will rob military families of their credit card rewards, reduce the availability of safe credit, and undermine the nation’s data security,” the associations stated in a joint letter to congressional leaders. “They have been filed with the goal of enriching the largest multinational retailers and obscure payments processors and have no business being added to annual legislation designed to bolster our national defense.”
The associations likewise stated the proposed research study modification “is a litany of slanted research questions hastily written to reach a foregone conclusion.” They kept in mind that a current Federal Reserve report concluded that charge card providers lose cash on deal charges they credit merchants since the providers pay those charges back out to others, consisting of customers, in the type of services supplied.