Richard Hunt, Executive Chairman of the Electronic Payments Coalition, said that the Durbin-Marshall Credit Card bill would significantly harm the U.S. economy, risking hundreds of thousands of jobs and billions in losses. This statement was made on BusinessWire.
“This new study proves the Durbin-Marshall bill is a jobs killer,” said Hunt, according to Business Wire. “The U.S. economy cannot afford a quarter-trillion dollar hit. Workers in cities across the country should not have to suffer so corporate megastores can pad their profits.”
The Durbin-Marshall Credit Card bill, formally titled the Credit Card Competition Act of 2023 (S.1838), was introduced in the 118th Congress to amend the Electronic Fund Transfer Act. According to Congress.gov, the legislation would require banks with over $100 billion in assets to offer at least two unaffiliated networks for processing credit card transactions. Proponents argue it would enhance market competition, while opponents say it could disrupt existing systems and lead to unintended economic consequences.
According to a study published by the Electronic Payments Coalition, the Credit Card Competition Act could cost the U.S. economy $227 billion in lost GDP and eliminate 156,000 jobs over five years. The report highlights significant risks to the travel and tourism industries, projecting $20 billion in spending losses and over 20 million fewer visitors. The findings suggest that changes to credit card routing could disrupt consumer benefits and economic activity tied to rewards-based spending.
Great Lakes Wire reported that the Credit Card Competition Act could negatively impact economic growth across Michigan, where the airline industry alone supports over $27 billion in annual economic activity. The report cites concerns from Airlines for America that the bill could reduce credit card rewards and deter travel spending. Michigan’s airports and tourism sectors may be particularly vulnerable to declines in consumer engagement driven by changes in payment processing.
Hunt was appointed Executive Chairman of the Electronic Payments Coalition in August 2023. He previously served as President and CEO of the Consumer Bankers Association for over a decade, where he advocated for retail banking and consumer financial services. Hunt brings decades of experience in financial policy and industry leadership to his role at EPC.
