Credit union leader warns new bill could weaken payment security

Senators Dick Durbin and Roger Marshall are pushing the Credit Card Competition Act, which would require banks with assets over $100 billion to provide merchants with a choice of at least two credit-card networks, including a non-Visa/Mastercard option. Scott Simpson, president and CEO of America’s Credit Unions, warned that the bill could lead merchants to adopt payment systems with weaker cybersecurity safeguards. He highlighted that many major data breaches have originated from retailers lacking strong incentives to protect consumer information.

While supporters claim the measure will lower merchant fees and benefit shoppers, critics fear it will simply shift savings to merchants and prompt card issuers to cut rewards. The debate unfolded at a policy event in Washington, D.C., where Treasury official Scott Bessent was also present.