TPA Slams Backdoor Move to Add Credit Card Competition Act as Amendment to GENIUS Act

For Immediate Release
Contact: Kara Zupkus (224) 456-0257

WASHINGTON, D.C. – Today, Sen. Roger Marshall (R-Kan.) filed his Credit Card Competition Act (CCCA) as an amendment to S. 1582, the GENIUS Act, currently being considered on the Senate Floor. The CCCA would severely harm the ability of many to access credit and popular rewards programs.

Following the filing of the amendment, David Williams, president of the Taxpayers Protection Alliance (TPA), offered the following statement:

“The Credit Card Competition Act is a misguided piece of legislation that will bring severe and undue harm to millions of consumers. Its champions, Sens. Marshall and Dick Durbin (D-Ill.), claim that the credit card marketplace is uncompetitive. However, this is not backed by any facts. The Federal Trade Commission (FTC), the Department of Justice (DOJ), nor the U.S. Supreme Court in Ohio v. American Express Co. (2018) have confirmed as much. In fact, there are more than 5,000 credit card issuers marketing directly to consumers. The senators’ claims of anti-competitiveness are patently false.

“This legislation will place severe restrictions on credit cards, similar to how the Durbin Amendment in the Dodd–Frank Wall Street Reform and Consumer Protection Act penalized debit cards. Removing debit card interchange fees in 2010 significantly restricted credit unions and community banks from providing services to customers. The change cost large banks between $6.6 and $8 billion in lost revenue and wiped-out rewards systems for debit cards. The same will be true with credit cards under CCCA.

“Passing the CCCA would heavily restrict or prohibit credit card companies from offering rewards programs. A 2024 study by the Electronic Payments Coalition (EPC) revealed that low, middle, and high-income households earn and redeem credit card rewards. The study also highlighted that the increase in rewards card offerings has made low-income households equally likely to hold a rewards card as higher-income households. Rewards programs have proven to be a meaningful tool of economic relief for credit card users, which can be particularly valuable in times of economic uncertainty. The study also showed that credit card users use cash back rewards and miles to offset any big-ticket expenses or emergency expenses, such as gifts or surprise bills. As consumers currently face economic turbulences removing credit card rewards programs would remove a safety net for the millions of users that have saved up an estimated $38 billion in rewards currencies last year.

“Consumers have the absolute right in a competitive marketplace to choose which credit card best suits their needs, whether it be for airline miles, points for purchases, or cash-back for everyday use. These programs overwhelmingly benefit consumers, and according to NFIB data, the interchange fees paid by companies for the ability to accept the card are not an issue for small businesses. In 2016, interchange fees ranked 38th in the NFIB survey of issues faced by small businesses nationwide, and in 2020, processing fees did not even make the list.

“However, it is not just rewards programs that are at risk. Interchange fees also fund fraud protection and card security services. Per FTC data, consumers reported losing more than $12.5 billion to fraud in 2024, a 25 percent increase over 2023. At a time when fraud is ever-present, Congress cannot afford to cut consumer protections against it. The CCCA is not a controversial bill. It’s widely opposed by the vast majority of Congress. That is why it did not receive a committee hearing or vote in either the 117th or 118th Congress. That is why it has not been formally introduced in the 119th Congress. It is why its sponsors must attempt to jam the text into another bill by adding it as an amendment, sliding it under the table with hopes that no one will notice. However, as watchdogs on behalf of taxpayers and consumers, TPA strongly urges the Senate to reject the CCCA in all forms.”