Water Cooler Talk

Could the Credit Card Competition Act Impact Credit Unions?

Credit unions provide savings on fees and interest rates for banking services and loans. The Credit Card Competition Act could impact their ability to offer these benefits, potentially driving interchange income down. Some credit unions share this revenue with their communities. The bill's supporters argue that increased competition will benefit consumers, but its impact on savings is debatable.

Jenn Day
Mar 6, 2024

Read the original Nerd Wallet article here.

Here is a brief summary of the article:

  • The Credit Card Competition Act could impact credit unions’ ability to provide these benefits.
  • Most credit unions fall below the asset requirement, but concerns persist about the bill’s potential indirect impact.
  • The bill could drive interchange income down for credit unions.
  • Some credit unions share their interchange revenue with the community, and the bill could affect their ability to do so.
  • The bill’s sponsors argue that competition in the marketplace will benefit consumers.
  • There’s some precedent for swipe-fee legislation, but its impact on consumers is debatable.
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