Missouri Bankers Oppose Credit Card Government Mandate

By Jackson Hataway, MBA President

MBA and its members strongly oppose federal legislation introduced in the U.S. House of Representatives that is extremely detrimental to Missouri banks and the customers they serve. It will have a chilling effect on banks’ ability to offer a diverse array of credit card products that consumers have come to value greatly.

The credit card routing mandate proposed by Reps. Peter Welch, D-Vt., and Lance Gooden, R-Texas, would force banks to contract with multiple credit card routing companies. It denies the freedom of community banks to choose the financial service partners that bring the greatest value, widest array of benefits and strongest financial security to their card customers. 

This proposal will impose enormous costs on Missouri banks. Community banks will be forced to change credit card processing systems, and it will jeopardize their ability to offer loyalty and reward cards that tens of thousands of Missourians value. The costs and mandates imposed by this legislation will drive small community banks from this marketplace and lead to further bank consolidation, which also reduces choice and competition.  

The legislation is identical to a U.S. Senate bill from Sens. Dick Durbin, D-Ill., and Roger Marshall, R-Kan. Giving a government agency the power to determine how Americans’ credit card transactions are processed goes against our country’s free-market system, and it threatens the privacy and data security of every cardholder and merchant.

We urge every member of Missouri’s congressional delegation to oppose this deeply flawed and harmful legislation.


The Missouri Bankers Association is a statewide trade and professional organization in Jefferson City that represents the interests of more than 235 banks and savings and loan financial institutions in Missouri. MBA serves as the principal advocate for the Missouri banking community and provides educational opportunities, products and services that assist bankers with enhancing their banking operations. Follow MBA on Twitter at @mobankers.com.