The following content is sponsored by the Electronic Payments Coalition.
It’s always a bit of a red flag when Walmart or Target says they are doing something in the name of competition. It’s why the latest bill they are lobbying for is so concerning. The innocuous sounding “Credit Card Competition Act” is anything but competitive. In reality, it’s a bait-and-switch. If passed, the bill will allow the government greater power over the credit card payments system in order to help big box stores squash the credit unions and banks they currently rely on to safely process their customers’ purchases.
The proposed legislation will give new powers to the federal government requiring the Board of Governors of the Federal Reserve system to create new regulations for how consumers’ credit card payments are processed. It will allow retailers to effectively ignore a customer’s preferred credit card network and instead process the payment on a cheaper, less secure network.
Walmart, Target, and Amazon want this bill for a few reasons.