Missouri Banking Groups Oppose Durbin 2.0 Government Mandate

The Missouri Bankers Association and the Missouri Independent Bankers Association oppose federal legislation that would force banks to contract with multiple credit card routing companies, which would have a chilling effect on banks’ ability to offer a diverse array of credit card products that consumers have come to value greatly.

Proponents of the Credit Card Competition Act of 2022 (S. 4674), sponsored by Sens. Dick Durbin, D-Ill., and Roger Marshall, R-Kan., are falsely touting this legislation as a mechanism to increase competition. Instead, it will prevent banks from competing and selecting the best card options for their customers while lining the pockets of big-box retailers and e-commerce giants. The bill will kill innovation in card services and weaken security and fraud protection that are hallmarks of the strongest financial services network in the world. Consumers expect their cards to work the first time, every time. This proposal will jeopardize that reliability, eroding consumer confidence in the card payment system.

“This legislation is extremely detrimental to Missouri banks and the customers they serve,” said MBA President Jackson Hataway. “The credit card routing mandate proposed by Sens. Durbin and Marshall 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 pay for rewiring how credit cards are processed, and it will jeopardize the ability of those same community banks 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.”  

“This proposal is bad news for Missouri’s banks and very bad policy for individual Missourians who look to their local bank for credit card services,” said MIBA Executive Director Matthew Ruge. “Despite claims by Sens. Marshall and Durbin, a federal mandate on credit card routing is direct government intervention into our free-market system and will ultimately deprive Missouri consumers of the benefits of highly popular credit card rewards programs and the highest data security and fraud protection for their personal credit card transactions. While the authors of this bill claim it will enhance competition, the fact is this proposal will jeopardize the ability of Missouri’s community banks to provide the high-quality credit card payment options that Missourians want and need.”


The Missouri Bankers Association is a statewide trade and professional organization in Jefferson City that represents the interests of 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.

The Missouri Independent Bankers Association is an organization of community banks, locally owned, operated and dedicated to meeting the financial and economic needs of their communities. The MIBA supplies its membership with programs and services, educational opportunities and legislative representation. For more information, visit miba.net. Follow MIBA on Twitter at @theMIBA.