Big box retailers are attacking consumer convenience, security, and value with the Big Box Bailout bill, America’s Credit Unions President/CEO Jim Nussle, American Bankers Association President/CEO Rob Nichols, and Independent Community Bankers of America President/CEO Rebeca Romero Rainey wrote in American Banker Monday.
“These new mandates will not only jeopardize your security — they will also drive up costs for community banks and credit unions across the country. Right now, our institutions support fraud protection, credit card rewards programs and other important offerings by processing and issuing credit cards,” they wrote. “Retailers pushing these new rules are using their political allies to avoid paying for the investments, services, convenience and security that allow them to accept credit card payments. They want all the benefits from the nation’s modern payments system that our members have built, without covering any of the cost.”
Nussle, Nichols, and Rainey also noted that the bill’s exemption threshold is “meaningless,” as less security means all institutions will face rising security, fraud,
“Consumers will see the loss of popular credit card rewards programs while also experiencing more fraud,” they noted. “It’s a double whammy that will especially hurt the budgets of families who are already struggling in this unpredictable economy.”
America’s Credit Unions remains engaged with Congress to prevent the Big Box Bailout from moving forward, and shared research last week that the majority of small businesses do not want any changes to the current system.
