The House and Senate are hurdling toward a government spending deadline on September 30. Sen. Durbin is threatening to hold the spending bill hostage until he gets a vote on the CCCA, which he introduced as an amendment to an appropriations bill that funds the Department of Veterans Affairs. We must ask our Senate partners to place a “hold” on the amendment that mirrors the CCCA. Placing a “hold” on an amendment is a way for senators to express that they do not want to take a vote on a measure. We must also reach Members of Congress to let them know we’ll oppose any similar amendments in the House of Representatives.
As a refresher, the CCCA takes power away from card issuers, like credit unions, and puts it in the hands of retailers and merchants. Currently, consumers can access credit cards with safe and reliable networks offered by credit unions and other financial institutions. The bill would change that dynamic. Vendors would have the option to choose what network a credit card transaction is paid through.
But big retailers are all about the bottom line – making a profit. If they choose a “cheaper” network to process a payment on, it can put consumer information at risk. The least expensive credit card network may not be the most secure. Networks with lower fees may not have the resources to quickly respond to fraud, properly encrypt consumer data and invest in updated security measures.
The cost of cybersecurity is on the rise, and it is becoming increasingly more expensive to protect consumer information. Credit card fraud is the second largest type of identity fraud in the country. Now is not the time to cut corners!
Credit card interchange fees help defray the cost of fraud detection, reimbursing consumers after a fraudulent purchase, and replacing credit cards. Who pays for these costs? Credit unions and financial institutions!
Credit unions are about putting our members first. Please support our members by making your voice heard in Congress! Connect For The Cause and email your Member of Congress today!