Velera announced that the Credit Card Competition Act would benefit large retailers at the expense of consumers, small businesses, and most U.S. financial institutions—particularly smaller credit unions. The announcement was made in a post on X.
According to Congress.gov, the Credit Card Competition Act of 2023 (S. 1838) was introduced in the U.S. Senate to require certain credit card issuers to enable transactions over at least two unaffiliated networks. The bill is intended to promote network competition but has drawn opposition from financial institutions that argue it could lead to increased fraud risks and weakened consumer protections.
NerdWallet reported that the Credit Card Competition Act could reduce consumer rewards, limit access to credit, and weaken fraud protection by introducing new routing mandates for credit card transactions. Financial institutions argue that these changes would increase costs for consumers and diminish the value of credit card usage.
Rough Draft Atlanta reports that the Credit Card Competition Act could disproportionately harm Georgia’s small businesses, many of which rely on credit card rewards programs to manage expenses. The bill could also increase processing risks and reduce funding for local financial services, impacting both business owners and everyday consumers in the state.
Velera is a financial technology solutions provider that serves credit unions and other community-based financial institutions. The company offers a range of services including digital banking, payments, and data analytics aimed at improving member experience and operational efficiency. Velera was formerly known as PSCU and rebranded in 2024 to reflect its expanded mission and services.
