The Credit Card Competition Act Is Detrimental For Tennessee Small Business And Consumers (Op-Ed)

Image Credit: Creative Commons

By Will Whitson [Chattanooga resident and Junior Engineer at Trenton Passing] –

In recent years, the Chinese Communist Party has worked silently and strategically to infiltrate all aspects of American life. We have seen this glaring intrusion in areas such as control over social media outlets, but efforts have also been extended in more subtle ways and embraced through the open arms of Democrats.

Most recently, and specifically, we have seen this attempted invasion through the Credit Card Competition Act (CCCA). This ongoing battle began in 2022, when Congress acted correctly to exclude the entry of the CCCA into the omnibus spending bill. Although the exclusion of the CCCA from the omnibus bill is a
relief to many within the United States, the fight to continue its exclusion is ongoing. Therefore it is important to recognize and identify the dire consequences this act will enforce on the American people if passed.

The implementation of the CCCA will have adverse effects for small businesses. In a world with high inflation, soaring gas prices, and rising general costs, small businesses are struggling to withstand the already harsh economy. Added financial burdens will increase the likelihood of the closure of family run stores. This with the compounding consumer uncertainty, results in small businesses disapproval of the CCCA as they along with consumers bear the main blunt of the additional fees, and increased product prices.

Consumers will also face detrimental financial effects if the CCCA is implemented.

Due to the loss of the interchange fee revenue, banks will experience a significant income loss. This in turn, will result in consumers having to compensate for the loss through higher interest rates, increased red tape when applying for credit cards, and overall increased fees.

It is also important to note that the CCCA will reduce the opportunity of cash back rewards to consumers. The abolishment of the interchange fee revenue will consequently reduce the ability for banks to give consumers rewards and benefits. With the rising expenses of our society, many families as well as individuals rely on the benefits they receive and the lack of rewards and benefits will greatly jeopardize the economic success of these families and individuals.

Lastly, the CCCA poses a severe security threat for consumers.

Interchange revenue acts as a successful buffer against credit card fraud. By protecting consumer security, individuals are not held responsible for fraudulent card transactions. Removing interchange fee revenue, the Chinese Communist Party can further root themselves within the American economy. They can do this by harboring both sensitive national and individual information. The removal of the interchange fee revenue will allow foreign owned companies to process and store data about American consumer’s financial transactions.

The CCCA also removes consumers’ ability to choose who gains access to their sensitive information. A specific network that will be allowed access to sensitive American information is UnionPay, a well known Chinese state sponsored network. This furthers the idea that the Chinese government is aiming its power and time to accessing and abusing American information.

The consequences our economy will face if the CCCA is implemented are clear. The CCCA will lead to fewer small businesses, lower accessibility to credit cards, and a significant increase in threats regarding credit card fraud and overall security.

These consequences will impact both the average consumer and small businesses while promoting already successful big-box stores. It is critical that Senator Blackburn and Senator Hagerty stand up to Democrats on this issue and the Chinese Communist Party to protect Tennesseans’ economic interests.

I hope that both Senator Hagerty and Senator Blackburn will put Tennessee first and protect our credit cards from those who wish America ill.