Centennial State News

Madlynn Schreibvogel, Vice President of Public Relations at GoWest Credit Union, said that interchange fees help cover the cost of fraud protection and secure transaction infrastructure. She made this statement in an interview on April 11.

"Consumers and retailers appreciate the convenience of credit and debit cards to pay for transactions," said Schreibvogel, VP of Public Relations. "That small “interchange” or “swipe fee” is utilized by financial institutions like credit unions to provide consumer fraud protections. When there is a retail breach, the financial institutions – not the merchants – bear the burden of paying for consumer protection. Interchange is a small price to ensure that people and businesses have access to credit and safe transactions."

The Credit Card Competition Act (CCCA), sponsored by Senators Richard Durbin and Roger Marshall, aims to increase competition in the credit card processing market. The legislation mandates that banks with over $100 billion in assets allow merchants to route transactions over at least two networks. According to The Wall Street Journal, supporters claim the bill would reduce costs for merchants. However, industry critics argue that the legislation would primarily benefit large retailers at the expense of consumers and small financial institutions, potentially leading to fewer credit card rewards and diminished access to no-fee banking.

According to updated figures published by AllayPay in 2025, the average interchange fee paid by U.S. merchants for credit card transactions is approximately 1.80%. The report details that in-person transactions average 1.70%, while online card-not-present transactions carry a higher rate of 1.90% due to increased fraud risk. These fees represent a significant ongoing cost for retailers and are central to debates surrounding the Credit Card Competition Act.

Mass Market Retailers reports that retailers saw average breach costs rise 17.6% year-over-year to $3.48 million. These figures suggest that financial institutions bear a disproportionately larger share of breach-related expenses, undermining arguments that they should also shoulder more costs from interchange fee reforms.

According to her official biography, Schreibvogel oversees strategic communications, media relations, and advocacy messaging across GoWest Credit Union’s six-state footprint. She has a background in both communications and financial policy and previously held positions in other advocacy organizations, further reinforcing her expertise in public affairs and credit union interests.

GoWest Credit Union represents more than 300 credit unions serving over 17.4 million members across Arizona, Colorado, Idaho, Oregon, Washington, and Wyoming. Its mission is to champion credit union interests through advocacy, education, and community engagement. GoWest prioritizes removing regulatory barriers and advancing pro-credit union legislation, including opposition to the Credit Card Competition Act due to concerns about its impact on small financial institutions.