Adding provisions from the Big Box Bailout Bill (Credit Card Competition Act) to the GENIUS Act would alter the current interchange system by placing government price controls on the credit card market and allowing retailers to choose the cheapest option to process payments. Consumers choose their credit card provider for a number of reasons – security, ease of transaction, rewards – but this bill takes away that choice. And instead pads the pockets of retailers.

When a consumer uses a credit or debit card to pay for a transaction, the merchant pays an interchange fee to the card-issuing provider for the benefits they receive from that transaction, such as immediate payment and fraud protection. The cost is typically a fraction of a cent per dollar transacted. When a customer makes a $100 credit card purchase, merchants pay less than $2 in fees that’s divided between the card-issuing financial institution, their own financial institution and the credit card network. These fees go toward a variety of expenses, including the cost of customer service, system improvements, online transactions, data security and card production.

The current card payment system works to protect consumers everywhere, using interchange fees to help fund the security needed to keep consumers’ cards and financial information secure. Big box retailers also benefit from the system with increased sales when consumers use credit cards. On average, consumers spend twice as much when using a credit card. But those same retailers – Target, Home Depot, Wawa – are willing to put their customers’ needs aside to line their pockets even more. And history shows they won’t pass on reduced interchange costs to their shoppers. After Congress limited interchange on debit cards in 2010, 98% of merchants either raised prices or kept them the same, while placing minimums or surcharges on debit card purchases.

If the Big Box Bailout amendment is adopted, the consequences for consumers would be crippling. Credit cards provide the lifeblood of credit availability for consumers and small businesses. Over 70% of U.S. GDP depends on consumer spending – spending that is driven by credit cards. Big box retailers would now be able to dictate which credit network will process transactions and go with the cheapest and potentially least secure option. Card rewards that consumers expect to receive for a transaction could disappear along with fraud protection services. Financial institutions, including credit unions, would suffer increased costs and fraud risk, ultimately forcing these institutions to limit credit offerings to consumers – especially those with lower credit scores who need access the most.

Attaching the Big Box Bailout to the GENIUS Act aims to bypass the normal hearing and committee process and give these massive retailers a bigger advantage over small businesses on the backs of the very consumers that keep them afloat. It is a poison pill that puts the bill at risk.

Many of the Trump Administration’s priorities call for investing in Main Street through innovation and opportunity, which is why it’s not surprising that Vice President J.D. Vance has called on the House and Senate to pass a “clean GENIUS Act,” free of amendments that have nothing to do with the goal of the bill.

Credit unions are committed to serving their members – more than 142 million Americans across the country. A key part of that service is consistently providing vital consumer financial services, such as free checking accounts and fraud protections. Our commitment is why we urge Congress to keep interchange out of the bill.

Say NO to the Big Box Bailout and keep the GENIUS Act clean.