Show-Me State Times

The head of a national payments group said a new study shows that proposed federal credit card regulations backed by U.S. Sen. Josh Hawley (R-Mo.) would negatively impact American job growth.

“This new study exposes yet another consequence of the Durbin-Marshall bill—it’s a job killer!“ Richard Hunt, executive chairman of the Electronic Payments Coalition (EPC) posted on X. “Why should Americans suffer so corporate megastores can boost profits?”

“Make no mistake,” posted Hunt. “This bill is anti-growth and dangerous for America.”

His comments were in response to an analysis released last week by EPC and Oxford Economics Research (OER) that showed the so-called Credit Card Competition Act could lead to a loss of $227 billion in economic activity and 156,000 job losses. 

Originally sponsored by U.S. Sens. Richard Durbin (D-Ill.) and Roger Marshall (R-Kans.) in 2023, the legislation would require banks to offer merchants at least two network options, one of which cannot be Visa or Mastercard, for processing credit card transactions. Opponents to the bill argue that if given the choice, retailers would likely choose cheaper, less secure networks for processing transactions, thereby exposing consumers to increased securities and fraud risks.  

Hawley joined as a co-sponsor on the bill in February 2024. The legislation has not, as yet, been re-introduced in the current Congress.

The bill could result in a $227 billion loss in economic output over approximately four years, driven by a 100 basis point reduction in interchange and an $80 billion decline in discretionary spending, according to the OER study, with regions reliant on travel and recreation spending projected to experience the greatest economic impact from the proposed policy.

OER is a global advisory firm that provides economic forecasting and analysis. The company was founded in 1981 as a commercial venture with Oxford University’s business college. It offers research on economic trends, policy, and industry performance for governments, businesses, and financial institutions. The firm operates offices in various regions, including North America, Europe, and Asia. Oxford Economics produces reports and data covering global and regional economies, industries, and markets.

The EPC is a trade association that represents credit unions, community banks, and payment card networks. The coalition advocates for policies that protect and promote the use of electronic payments.