You may have to kiss those credit-card points goodbye. That’s the warning issued by critics of proposed legislation designed to encourage competition among credit-card networks and make it cheaper for retailers to process credit-card payments.
First proposed in June 2022 by Sen. Dick Durbin, an Illinois Democrat, the bill was reintroduced this past summer with new bipartisan support. Supporters of the bill, dubbed the Credit Card Competition Act, say it would address a Visa-Mastercard
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duopoly and lower processing costs for businesses — and, by extension, help consumers’ wallets. The proposed changes have drawn sharp criticism from airlines, travel firms and financial institutions, who argue the bill would place unnecessary restrictions on payment processing and inadvertently get rid of many credit-card perks and rewards programs. Millions of Americans use those programs to book travel plans, upgrade flight seats or earn cash back on purchases. Airlines have stepped up their public opposition to the Credit Card Competition Act in recent weeks, with executives pointing to the legislation’s potential consequences for frequent flyer miles. But could the bill really end up impacting your flight miles and dining points? Here’s what you need to know.What is the Credit Card Competition Act? Credit-card issuers make money in three primary ways: through interest and fees charged directly to customers, and through other charges called interchange fees — paid by the merchants where you use your card, as a percentage of each transaction. Occasionally, shops, restaurants a …
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