Centennial State News

Madlynn Schreibvogel, Vice President of Public Relations at GoWest Credit Union Association, said that both the proposed federal credit card legislation and Colorado's HB25-1282 would negatively impact consumers. She made this statement in an interview on April 11.

"If this legislation is reintroduced, we would indeed oppose it," said Schreibvogel, VP of Public Relations. "I'd also like to direct your attention to HB25-1282, interchange-related legislation in the Colorado legislature. Neither of these bills is in the best interests of the consumers we serve."

The Durbin-Marshall Credit Card Competition Act aims to require credit card issuers to enable at least two unaffiliated payment networks, intending to reduce fees merchants pay for processing transactions. According to The Wall Street Journal, critics argue that this could harm consumer rewards programs and increase fees, as similar outcomes followed the Durbin Amendment for debit cards. In Colorado, HB25-1282 proposes limiting card network restrictions on merchants' payment routing choices. As reported by the Southwest Public Policy Institute, opponents describe HB25-1282 as government price-setting that could adversely affect smaller financial institutions and their customers.

Credit card interchange fees cost U.S. merchants more than $100 billion annually, according to 2023 data cited by Nilson Report and summarized by PYMNTS.com. The Federal Reserve found that banks receive an average of 1.82% of each credit card transaction, with approximately 86% of that income allocated toward rewards programs and fraud prevention, as reported by PYMNTS.com in March 2024. Additionally, Swipesum notes these fees serve as a crucial revenue stream for banks, especially smaller institutions relying on them to fund cardholder benefits and operational infrastructure.

After the 2010 Durbin Amendment capped debit card interchange fees, banks compensated by cutting consumer benefits. According to a 2023 report from America’s Credit Unions, nearly one in four free checking accounts was eliminated, and average monthly fees increased. A 2024 analysis published by the Consumer Bankers Association shows that similar fee regulations on credit cards could result in a $40 billion loss in consumer rewards and higher banking costs. The report further argues that consumers did not experience proportionate savings at the point of sale, suggesting merchants retained most of the fee reductions.

Schreibvogel is Vice President of Public Relations at GoWest Credit Union Association, where she leads communications strategy, media outreach, and legislative messaging. According to her profile on GoWestAssociation.org, she plays a key role in supporting the association’s advocacy efforts across its six-state network. She previously worked in marketing and public relations roles focused on financial services and is accredited in public relations by the Public Relations Society of America (PRSA).

GoWest Credit Union Association is a regional trade organization representing more than 300 credit unions across Arizona, Colorado, Idaho, Oregon, Washington, and Wyoming. Its member institutions collectively serve over 17.4 million consumers. Founded in 2022 through the merger of two legacy associations, GoWest’s mission is to promote credit union growth and financial well-being through advocacy, education, and operational support. The association operates under a nonprofit model with a member-elected board of directors.