Tampa Republic

The former president of the Railroad Credit Union said credit card regulations pending in Congress would threaten tourism In Florida.

“The Credit Card Competition Act (CCCA), currently being debated in Congress, is touted as a way to increase competition and lower costs for merchants by reducing interchange fees on credit card transactions,” wrote Arthur Wood in an op-ed in the Tampa Free Press. “However, this legislation poses significant threats to key economic sectors, particularly tourism in states like Florida, and will negatively impact marginalized communities that rely on credit access.” 

Wood was the president and CEO of the Railroad and Industrial Federal Credit Union, now called the Tax Credit Union, for 17 years.

Originally sponsored by U.S. Sens. Richard Durbin (D-Ill.) and Roger Marshall (R-Kans.), the so-called Credit Card Competition Act would require banks to offer merchants at least two network options, one of which cannot be Visa or Mastercard, for processing credit card transactions. Opponents to the bill argue that if given the choice, retailers would likely choose cheaper, less secure networks for processing transactions, thereby exposing consumers to increased securities and fraud risks.  

Wood's op-ed comes a month after an analysis, conducted for the Electronic Payments Coalition (EPC) by Oxford Economics Research (OER), found the credit card regulations could lead to a loss of $6.5 billion in economic activity and 6,800 job losses in Miami, as well as a loss of $3.7 billion in economic output and 6,800 jobs in Orlando. 

The potential impact of the bill on ”discretionary spending disproportionately affects industries such as entertainment, travel, and recreation, geographic regions reliant on these industries are more susceptible to unintended outcomes,” said the OER analysis. 

Nationally, the bill could result in a $227 billion loss in economic output over approximately four years, driven by a 100 basis point reduction in interchange and an $80 billion decline in discretionary spending, according to the OER study, with regions reliant on travel and recreation spending projected to experience the greatest economic impact from the proposed policy.

"For Florida’s tourism industry and marginalized communities, the consequences of this bill could be severe," wrote Wood. "The Credit Card Competition Act would erode consumer benefits, reduce security, and limit access to credit—all while providing little relief for small businesses."