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Why the ‘Credit Card Competition Act’ Happily Died

| Real Clear Markets

Last year, Senator Dick Durbin (D-IL) introduced legislation that proved deeply unpopular as it was quickly exposed as a government handout to mega-retailers like Walmart and Target. The so-called “Credit Card Competition Act” aimed to lower costs for retailers by allowing stores, rather than customers, to choose the level of payment security used during credit card transactions. This would have come at the expense of consumers, who would be stuck with less secure payments and a loss of rewards.

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