Blab Politics
Credit Unions Warn of Security Risks as Senate Pushes Credit Card Competition Act
A looming bill that could reshape the U.S. credit‑card landscape has prompted a sharp warning from America’s Credit Unions, the trade association that represents credit unions nationwide. The Credit Card Competition Act (CCCA), first introduced in 2022 and re‑introduced in January 2026, is now under bipartisan scrutiny by Senators Dick Durbin (D‑IL) and Roger Marshall (R‑KS).
Supporters of the CCCA say the legislation would break the Visa‑Mastercard duopoly that dominates the market and lower the fees merchants pay to accept card payments. In the current system, merchants who accept credit cards are forced to use the payment network that the card is issued on. Visa and Mastercard together command more than 80 percent of the market, and merchants pay interchange and other fees set by those networks. The CCCA would require banks with more than $100 billion in assets to offer merchants a choice of at least two payment networks for processing a credit transaction, and one of those networks must be a non‑Visa and non‑Mastercard scheme.
Durbin and Marshall, who co‑sponsored the bill with Senator JD Vance (R‑OH), Senator Peter Welch (D‑VT), Senator Josh Hawley (R‑MO), and Senator Jack Reed (D‑RI), argue that the bill would increase competition and reduce costs for merchants. Proponents say lower fees could be passed on to consumers.
Opponents raise several concerns. First, they argue that merchants may simply keep any savings that result from lower fees, rather than passing them on to shoppers. Second, credit‑card issuers could reduce or eliminate rewards programs to offset lost revenue. Third, and most relevant to America’s Credit Unions, critics say that the bill could expose consumers to security risks.
During a policy event in Washington, D.C., the association’s president and chief executive officer, Scott Simpson, spoke with Breitbart News economy columnist John Carney. Simpson warned that the interchange system is designed to protect consumers and that weaker payment networks would not have the same incentives to secure data. He said:
> "A lot of people are worried about fraud and cybersecurity, and this could impact the ability of issuers to be able to, especially I think credit unions, but all issuers to be able to deal with fraud and cybersecurity…"
Simpson added that the biggest data breaches in the country typically come from retailers that lack incentives to protect customer data. He said the interchange system “establishes contracts with the American consumers and reliable protection,” but that protection comes at the expense of the issuer.
The CCCA has attracted bipartisan support, but it also faces strong opposition from industry groups that fear the bill could undermine the security infrastructure that protects cardholders. The trade association’s warning comes as the bill is still in the early stages of Senate consideration.
At the event, Treasury Secretary Scott Bessent was also present, but no official statement from the Treasury was released regarding the bill.
The bill’s passage would require a vote in the Senate and, if approved, a vote in the House. No deadline has been set for the bill’s progress, and it remains unclear whether the legislation will be included in any upcoming appropriations or defense spending packages.
For now, the CCCA remains a proposal under debate. The key questions for lawmakers are whether the potential cost savings for merchants outweigh the risks of weaker payment security and whether the bill would truly increase competition or simply shift costs among stakeholders.
The debate highlights a broader tension in U.S. payment policy: balancing the desire for lower transaction costs with the need to maintain robust fraud‑prevention and data‑security standards.
In the coming weeks, the Senate will likely hold committee hearings on the bill, and the House may consider it as part of larger fiscal legislation. Until a vote is taken, the future of the Credit Card Competition Act remains uncertain.
Supporters of the CCCA say the legislation would break the Visa‑Mastercard duopoly that dominates the market and lower the fees merchants pay to accept card payments. In the current system, merchants who accept credit cards are forced to use the payment network that the card is issued on. Visa and Mastercard together command more than 80 percent of the market, and merchants pay interchange and other fees set by those networks. The CCCA would require banks with more than $100 billion in assets to offer merchants a choice of at least two payment networks for processing a credit transaction, and one of those networks must be a non‑Visa and non‑Mastercard scheme.
Durbin and Marshall, who co‑sponsored the bill with Senator JD Vance (R‑OH), Senator Peter Welch (D‑VT), Senator Josh Hawley (R‑MO), and Senator Jack Reed (D‑RI), argue that the bill would increase competition and reduce costs for merchants. Proponents say lower fees could be passed on to consumers.
Opponents raise several concerns. First, they argue that merchants may simply keep any savings that result from lower fees, rather than passing them on to shoppers. Second, credit‑card issuers could reduce or eliminate rewards programs to offset lost revenue. Third, and most relevant to America’s Credit Unions, critics say that the bill could expose consumers to security risks.
During a policy event in Washington, D.C., the association’s president and chief executive officer, Scott Simpson, spoke with Breitbart News economy columnist John Carney. Simpson warned that the interchange system is designed to protect consumers and that weaker payment networks would not have the same incentives to secure data. He said:
> "A lot of people are worried about fraud and cybersecurity, and this could impact the ability of issuers to be able to, especially I think credit unions, but all issuers to be able to deal with fraud and cybersecurity…"
Simpson added that the biggest data breaches in the country typically come from retailers that lack incentives to protect customer data. He said the interchange system “establishes contracts with the American consumers and reliable protection,” but that protection comes at the expense of the issuer.
The CCCA has attracted bipartisan support, but it also faces strong opposition from industry groups that fear the bill could undermine the security infrastructure that protects cardholders. The trade association’s warning comes as the bill is still in the early stages of Senate consideration.
At the event, Treasury Secretary Scott Bessent was also present, but no official statement from the Treasury was released regarding the bill.
The bill’s passage would require a vote in the Senate and, if approved, a vote in the House. No deadline has been set for the bill’s progress, and it remains unclear whether the legislation will be included in any upcoming appropriations or defense spending packages.
For now, the CCCA remains a proposal under debate. The key questions for lawmakers are whether the potential cost savings for merchants outweigh the risks of weaker payment security and whether the bill would truly increase competition or simply shift costs among stakeholders.
The debate highlights a broader tension in U.S. payment policy: balancing the desire for lower transaction costs with the need to maintain robust fraud‑prevention and data‑security standards.
In the coming weeks, the Senate will likely hold committee hearings on the bill, and the House may consider it as part of larger fiscal legislation. Until a vote is taken, the future of the Credit Card Competition Act remains uncertain.
