EPC Statement on Value of Credit Card Rewards; CFPB, DOT Retribution Hearing

Date: May 9, 2024
Media Contact:
Nick Simpson
Nick@electronicpaymentscoalition.org

WASHINGTON, DC — Electronic Payments Coalition Executive Chair Richard Hunt issued the following statement on the value of credit card rewards after the Consumer Financial Protection Bureau (CFPB) and the Department of Transportation (DOT) held a joint hearing on credit card and airline reward programs, requested by Senators Roger Marshall (R-Kan.) and Dick Durbin (D-Ill.) to weaponize the federal government against American companies opposing the Senators’ proposed credit card mandates:

“Millions of Americans, especially low-to-moderate income Americans, rely on credit card rewards to help pay for groceries, gas, back-to-school supplies and trips to see loved ones. Not only do individuals and families depend on credit card rewards, they are also vital to local communities and tourism jobs across the country. Rewards from the 30 million cobranded airline cards Americans use every day generated $23 billion in economic activity.

“But, this hearing is not about finding the facts, it was political retribution and a weaponization of the federal government against American companies opposing the Durbin-Marshall Credit Card Bill.”

NOTE: EPC this week released a new report examining how American consumers, including lower-income consumers, utilize reward credit cards and how proposals restricting card issuers’ ability to offer reward credit cards would adversely impact cardholders of all incomes.

The study found the share of credit cards offering rewards is nearly identical across income and cardholders, regardless of income, earn rewards at virtually equal rates. More information on that report is available here. This report builds on data from Airlines for America on the economic impact of rewards used through cobranded credit cards.