The Credit Card Competition Act, while appearing beneficial for consumers, poses significant risks to underserved communities and small businesses in New Hampshire, as highlighted by Alejandro Urrutia, former Chairman of the New Hampshire Democratic Party Latino Caucus. The bill aims to allow large corporations to reroute credit card transactions through alternative payment networks, which could lead to dire consequences for minority-owned businesses and those reliant on credit access. Drawing parallels to the 2010 Durbin Amendment, which capped debit interchange fees, Urrutia warns that similar outcomes are likely to ensue. Local banks and credit unions could face substantial revenue losses, resulting in reduced lending, increased interest rates, and higher credit card fees. Economists predict that this could lead to 10 to 15 million Americans losing access to credit, disproportionately affecting marginalized communities. Ultimately, the bill primarily benefits large retailers, while small businesses and consumers may bear the brunt of its negative impacts.
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