Op-ed: Stand against Credit Card Competition Act
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I am following the push to pass the Credit Card Competition Act that is under way in Washington, D.C. with great interest. Sen. Dick Durbin, out of Illinois, and others are making an effort to attach this damaging legislation to the National Defense Authorization Act. They are doing so because they know it cannot pass any other way.
If passed, this bill will establish alternate routing systems on credit card transactions. It will hurt banks and credit unions, costing them billions of dollars in revenue. If our financial institutions lose this type of revenue, then they will be forced to cut back on services to consumers. Few cards will be issued, and banks will have to charge annual fees for credit cards. Lower income families will not be able to access credit cards, and this will hurt their ability to make unplanned purchases. The credit card rewards system will also be decimated and that will mean consumers who use those points to book flights and hotel rooms will suffer.
My family has a long history in the banking industry. We recognize the damage this type of legislation will do and I hope our delegation to Washington, D.C. does as well. The Credit Card Competition Act sponsors are claiming that the bill exempts our community banks, but in reality, it will create industrywide negative impacts that even our smallest banks will feel. I hope our leaders at our nation's capital recognize that Sen. Durbin and his allies on this issue are making an attempt to attach this legislation to a bill that has nothing to do with banking.
What do credit cards have to do with national defense? They don't.
I hope everyone recognizes this and stands against this effort and the bill as a whole.
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Del. Vernon Criss is a Republican representing the 12th District, in Wood County, and lives in Parkersburg.