Milwaukee City Wire

Robert Kolb, a member of the Waukesha County Board, expressed concerns regarding the Credit Card Competition Act. He said that the legislation would compel banks and credit unions to use inferior processing networks, potentially harming credit card rewards programs and primarily benefiting large retailers.

"The comically named Credit Card Competition Act was written by big box store lobbyists as a price-fixing scheme to ensure their clients make more money at our expense," said Robert L. Kolb, County Board Member. "Under this bill, banks and credit unions would be forced to offer cut-rate processing networks. This congressionally forced product would not only not be required to have standard credit card security features, but it would also cause the end of the credit card rewards programs so many of us use and love. I hope Senators Johnson and Baldwin tell these big box store lobbyists to sell their snake oil someplace else and put an end to this absurd bill."

According to the National Association of Convenience Stores (NACS), the Credit Card Competition Act is designed to foster competition among credit card processing networks by allowing merchants to select from at least two networks. Proponents argue that this could reduce swipe fees, thereby benefiting consumers. However, critics like Kolb contend that it mainly favors big-box stores while posing risks to consumer protections.

The Electronic Payments Coalition indicated that the Credit Card Competition Act of 2022 did not pass due to significant opposition from small financial institutions and credit unions. These entities argued that the act would diminish revenue used for fraud protection and consumer rewards. The coalition also mentioned that the legislation could have resulted in fewer choices and increased costs for consumers, as well as disruptions to the existing payment infrastructure.

According to the Wisconsin Bankers Association, the act could adversely affect Wisconsin consumers by mandating multiple payment processing networks, including less secure options. This could heighten fraud risk and lead to the discontinuation of popular credit card rewards programs relied upon by many residents. Critics argue that focusing on reducing merchant fees compromises consumer protection.

Kolb has been a member of the Waukesha County Board since 2014, with a re-election in 2022. He also serves on both the Land Use, Parks, and Environment Committee and the Public Works Committee.