Washington, D.C., May 2025 – The American Logistics Association (ALA) has formally urged congressional leaders to support the Credit Card Competition Act (CCCA), highlighting the severe impact rising credit card interchange fees are having on military and veteran families.
In a letter addressed to Senate Majority Leader John Thune, Senate Minority Leader Charles Schumer, House Speaker Mike Johnson, and House Minority Leader Hakeem Jeffries, ALA President Stephen Rossetti emphasized the financial burden these fees impose on those who serve and have served in the military. According to the ALA, the average military or veteran family pays nearly $1,000 annually due to interchange fees, regardless of whether they use credit cards themselves.
“These fees are eroding the financial well-being of military families and hindering the operations of on-base retail programs, which are designed to support service members’ quality of life,” Rossetti wrote.
On-base retail programs are essential benefits for military personnel and their families, providing goods and services at an average discount of over 20%. Revenues from these programs are reinvested into community support services. However, Rossetti notes that rising interchange fees significantly reduces the ability of these operations to invest in staffing, inventory, and other critical needs.
The letter also points out that the structure of these fees—charged as a percentage of each transaction—exacerbates inflationary pressures, further diminishing the real value of military benefits.
By advocating for the passage of the CCCA, the ALA believes the legislation will introduce needed market competition into the credit card processing system. The bill would require credit card networks to allow multiple routing options for transactions, thereby challenging the dominance of major payment processors and potentially lowering transaction costs.
The ALA argues that such reforms are not only overdue but essential to protecting the financial readiness and overall quality of life for service members, veterans, and their families.
ALA Letter to Members of Congress Credit Card Competition Act
