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The Kansas Bankers Association issued a statement on January 13 strongly opposing a proposed 10% cap on credit card interest rates. The group also confirmed its opposition to a credit card payment routing mandate, saying it would undermine the safety, security and consumer protections associated with credit card use.

Doug Wareham, KBA President & CEO, warns that a government-imposed 10% interest rate cap on credit cards would cut off access for millions of Americans, including thousands of Kansans. While such a cap may seem appealing, it could ultimately harm families and small businesses that depend on credit cards. Implementing this type of price control would likely lead banks to tighten lending standards, significantly reducing consumer access to safe and reliable credit cards used in daily life.

The KBA urges Congress to reject the recently reintroduced Credit Card Competition Act (CCCA) by Senators Richard Durbin (D-Illinois) and Roger Marshall (R-Kansas). The association views the CCCA as unnecessary government interference in the free market, creating a credit card routing mandate driven by large retailers and merchants seeking control over who processes credit card transactions.

“This mandate, commonly known as the Durbin-Marshall Amendment, is another misguided proposal that will leave consumers and small business owners with fewer options and few financial benefits from their credit cards,” stated Wareham. “The Durbin-Marshall Amendment would weaken credit card security, devastate credit card reward programs, and remove the consumer’s choice regarding what credit card network processes their credit card payments. KBA strongly encourages Congress to oppose government interference in the credit card marketplace.”