Statement on the Federal Proposal to Mandate Credit Card Routing Proposed by U.S. Senators Durbin and Marshall

Press release

Sacramento, Calif., July 29, 2022: “The California Bankers Association (CBA) strongly opposes federal legislation introduced by U.S. Senators Dick Durbin (D-IL) and Roger Marshall (R-Kansas) that would create a credit card routing mandate. This legislation would upend the current and thriving U.S. payments landscape by requiring every credit card to be reissued to include multiple networks on all credit cards.

Instead of increasing competition, consumers would lose the choices they currently have to merchants. This means they could be at risk with less secure and unreliable networks and lose the protections and benefits they currently rely on.

In addition, there is a significant cost to rewiring the credit card transactions process, not to mention reissuing more than 350 million credit cards currently in use. Financial institutions will need to make operational and network changes which will impact the calculations that financial institutions use to determine credit worthiness. A disruption in short-term lending credit can have a negative impact on consumers as they recover from the pandemic and navigate the economic uncertainties.”