Check out what experts are saying about the consequences of credit routing legislation (S. 1838/H.R. 3881) that will harm consumers and small businesses:
Wall Street Journal: The Plan to Make Credit Cards More Expensive (7/6/2023):
“And just as the first Durbin Amendment killed rewards on debit cards, experts such as Gary Leff of the View from the Wing blog warn that Durbin-Vance would put an end to popular frequent-flier and other card reward programs. Pushing the use of lesser-known card networks also might compromise consumer data security.” (Link to full article)
Yahoo Finance: Credit Card Competition Act would harm consumers (7/21/2023):
“Instead of viewing credit cards as the enemy, merchants should view these processing fees as a necessary cost of doing business. Credit cards provide retailers and consumers with many advantages. Disrupting this market would lead to many adverse consequences for all parties.” (Link to full article)
CATO Institute: Durbin Remains Persistent – and Misguided (7/13/2023):
“If Congress moves forward with this idea, consumers will lose. Banks will make up the cost however they can, whether by charging higher fees or eliminating rewards programs. And fewer companies will invest in new and improved networks because it will be more difficult to earn a profit, thus keeping the U.S. payments system technologically stagnant.” (Link to full article)
Washington Times: Walmart is Coming for Your Credit Card, and Congress is Helping (7/11/2023):
“If big-box stores get their way with the Big-Box Bill, they’ll get a fee break, but consumers won’t see any savings. What they will see are fewer rewards and less access to credit as financial institutions — left with less revenue — will no longer be able to offer the variety of credit cards Americans have today.” (Link to full article)
Forbes: New Credit Card Regulations Will Hurt Consumers And Small Business (7/10/2023):
“If Durbin 2.0 passes, the negative impacts of regulatory whack-a-mole will be felt not just by consumers and banks, but by merchants—large and small—as well. A higher rate of declined authorizations due to increased fraud rates will frustrate cardholders and ultimately negatively impact merchant revenue.” (Link to full article)
The Points Guy: Here’s why your credit card perks could be going away (7/10/2023):
“This law, if passed, would be destructive for our lucrative rewards ecosystem, and it would take away value from consumer pockets to pad retail corporate profits. … There are a lot of huge issues our government should be working on, but destroying credit card rewards so retailers can make more money shouldn’t be one of them.” (Link to full article)
Finance Buzz: Credit Card Competition Act of 2023: The End of Credit Card Rewards (7/24/2023):
“Any credit card that earns rewards, especially the best travel credit cards, will likely see the largest impact if the CCCA passes. This is because credit card issuers would have to recoup billions of dollars in lost revenue from fewer credit card transactions on their networks, which would probably result in gutted rewards programs.” (Link to full article)