Centennial State News

Ryan Fitzgerald, Senior Vice President of Advocacy at GoWest Credit Union Association, said the Credit Card Competition Act (CCCA) could weaken payment security and undermine credit unions' consumer protection efforts. The statement was made during an interview on April 11.

Fitzgerald criticized the federal proposal aimed at increasing competition in the credit card routing market. According to him, "The Credit Card Competition Act (CCCA) will only benefit mega retailers." He added that it would force local financial institutions like community banks and credit unions to contract with multiple credit card routing companies without security guarantees. "The decision about which card routing companies are used would be made by the merchant or retailer," he said, emphasizing that merchants might choose cheaper systems over secure ones.

According to Payments Dive, the CCCA was reintroduced in 2024 by Senators Dick Durbin and Roger Marshall. It aims to disrupt Visa and Mastercard's duopoly by requiring banks with over $100 billion in assets to offer at least two unaffiliated payment networks on their credit cards. While supporters believe it will lower merchant fees and promote innovation, opponents warn of potential compromises in card security and reduced consumer rewards.

In 2024, Recorded Future reported a significant rise in credit card fraud, with 269 million card records found on dark web forums. The report highlights merchant routing and third-party payment processors as frequent breach points for card-not-present transactions. According to the firm, cybercriminals increasingly target vulnerabilities within payment ecosystems.

Fitzgerald further said that "Interchange helps their credit unions to protect members' data" and ensure financial recovery when fraud occurs on a merchant's system. He emphasized their goal is to alleviate security risks from consumers.

A 2023 report by the Common Sense Institute revealed U.S. merchants paid $143 billion in interchange fees, accounting for 74% of total card processing costs. According to the same study, these fees primarily fund consumer rewards programs, with Federal Reserve data indicating that 86% of interchange revenue supports cardholder perks. Retailers argue reducing these fees could lower prices; however, banks caution it might end popular reward offerings.

According to the GoWest Credit Union Association website, Ryan Fitzgerald serves as Senior Vice President of Advocacy, directing federal policy efforts for credit unions across six states. His previous roles include Vice President of Federal Advocacy and Legislative Affairs in Idaho, bringing over a decade of experience in lobbying and financial services advocacy focused on member-owned institutions.