OPINION:
Like many Americans, I use a rewards credit card. According to a May 2023 report by CNBC, 90% of credit card spending is done on reward cards. U.S. consumers heavily favor the frequent flyer miles, cash back, hotel and travel perks, and other loyalty benefits of these cards.
Ironically, if the cynically named Credit Card Competition Act is passed into law, all those benefits are likely to go away. This bill, authored by Sen. Dick Durbin, Illinois Democrat, has little to do with competition but much to do with big-box stores getting Congress to stack the deck in their favor.
The bill will force banks and credit unions to create new cut-rate processing networks that lack current consumer safeguards. Mr. Durbin authored similar legislation affecting debit cards as part of Dodd-Frank a decade ago, and studies show banks and credit unions were forced to eliminate rewards programs and big-box stores increased their profits without cutting prices.
Inflation is already harming family budgets. Our elected representatives should focus on that rather than taking away the credit card rewards we all love.
MARIAN KRUMBERGER
Suamico, Wisconsin
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