Richard Hunt, Executive Chairman of the Electronic Payments Coalition (EPC), expressed concerns regarding the Durbin-Marshall Credit Card Bill, stating it could lead to a detrimental downturn in local communities. This statement was made in a press release on Business Wire.
“Make no mistake, this bill would create a completely avoidable downturn in local communities,” said Hunt, according to Business Wire. “It is anti-growth and dangerous economic policy.”
According to Congress.gov, the Credit Card Competition Act, sponsored by Senators Dick Durbin and Roger Marshall, proposes that credit card-issuing banks offer at least two unaffiliated networks for transaction routing. Proponents argue this would increase competition and lower merchant fees. However, critics warn it might reduce consumer rewards and negatively impact small businesses. The bill has ignited debate among financial industry stakeholders and lawmakers.
A study commissioned by the EPC estimates that the Credit Card Competition Act could cost the U.S. economy $227 billion in GDP and 156,000 jobs over five years. Conducted by Cornerstone Advisors, the analysis suggests that the legislation may decrease cardholder rewards and heighten fraud risks. It also indicates potential losses in travel, tourism, and small business spending.
According to the South Carolina Department of Commerce, South Carolina’s tourism economy generates over $29 billion annually and supports more than 200,000 jobs statewide. The industry is crucial for local revenue and small business activity, especially in coastal and rural areas. Disruptions to consumer spending—such as those predicted from the Credit Card Competition Act—could have long-term effects on this vital economic sector.
Hunt was appointed Executive Chairman of the EPC 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.
