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The Electronic Payments Coalition has opened a new front in its battle to prevent passage of the Credit Card Competition Act: it’s recruiting social-media influencers to join its cause. In June, the EPC put out a memo on the new tactic as part of its “Hands Off My Rewards” campaign to prevent passage of the CCCA.
Social-media influencers are persons who have established themselves as experts in a particular field and share their knowledge with other consumers through one or more social channels, such as TikTok, X (formerly Twitter), Instagram, and Facebook. They are typically compensated for their work through sponsored posts, affiliate marketing, brand partnerships, official network monetization programs, merchandising, or direct donations.
The memo was sent to social-media influencers who have indicated they do not want to lose their credit card rewards and current fraud protection, the EPC says.
The EPC’s strategy of turning to influencers to help shape public opinion about the CCCA, a move the group hopes will in turn influence legislators, is a clear indication the payments industry will not stand by quietly while proponents of the CCCA make their case for passage of the bill, some payments experts say.
“Unlike 2010, when the Durbin Amendment was introduced, the EPC has been much more vigorous in its opposition of the CCCA,” says Eric Grover, proprietor of the payments consultancy Intrepid Ventures. Grover opposes the CCCA. “This stance is long overdue,” he adds. “In 2010, the payments industry was very complacent. Had the industry been this aggressive in its opposition to Durbin in 2010, the outcome may have been different.”
Among other restrictions, the Durbin Amendment capped interchange fees large banks can charge for debit card transactions. The Fed in October proposed a downward revision of the cap.
In its memo sent to social-media influencers, the EPC outlines what it considers to be key messaging points, such as the idea that, if passed, the CCCA would put credit card rewards at risk. The memo also advises influences to avoid using the term “swipe fees.”
“The CCCA will not lower prices for consumers the same way the Richmond Fed said similar debit card legislation would ten years ago,” an EPC spokesperson says by email. “The CCCA will force card transactions to run on untested networks and is opposed by consumer groups, community banks, credit unions, and labor unions because it is a flawed policy which has never had a committee hearing or stood up to real questioning.”
The Merchants Payment Coalition, which supports the bill, takes issue with the EPC’s decision to recruit influencers. The group learned about the tactic earlier this week. “It’s not flattering [that] the EPC has to pay people to agree with them,” says Doug Kantor, an executive committee member at the MPC and general counsel for the National Association of Convenience Stores.
Kantor adds that, by establishing guidelines for influencers on messaging about the CCCA, the EPC is using a communications channel where misinformation is often spread. “With many people getting their information about important issues from social media today, influencers are a way to spread misinformation that hasn’t been vetted and misinformation seems to be a central part of the card-industry playbook,” Kantor says. The MPC says it does not engage influencers for its lobbying efforts.
Nevertheless, the effort to affect policy through social media is a bold and creative strategy for the EPC, as the association can pitch its message to consumers, some observers say. “If consumers are engaged in an issue, they are a powerful political force. Give the EPC credit, they are really bringing it,” says Grover.
The EPC adds it has surpassed 1.1 million letters received from constituents and sent to lawmakers. With Congress set to adjourn for the holidays at the end of the week, payments-industry experts say it is doubtful the CCCA will come to a vote this year.
