A new piece of legislation regarding credit cards has been introduced in the U.S. Senate. The proposed Credit Card Competition Act of 2023 (CCCA) targets credit card interchange income that issuers receive to offset costs and provide benefits in offering credit cards to their customers.
The Credit Card Competition Act will increase costs on small businesses and consumers, reduce investment in payment security, and empower regulators such as the Federal Reserve.
Last month, backers of the Credit Card Competition Act (CCCA) indicated that they anticipate a vote before the end of the year. This seems even more likely following Senator Dick Durbin’s most recent statement, urging that his bill be brought forward for a vote, ultimately to fight against what he calls the Visa-Mastercard “duopoly.”
Changes are coming to airline and credit card rewards programs, but the quest for higher status is still worth it.
Most small businesses begin as an idea and a dream. Through risk-taking, creativity and sweat those dreams become the economic lifeblood of local communities across America. This activity has provided a pathway for millions to achieve prosperity and financial security.
As a proud Arizonan and Latina small business owner, I advocate against any policies that threaten economic empowerment for our communities. I can say wholeheartedly that the Credit Card Competition Act will hurt us more than it will help us.
Supporters of the Credit Card Competition Act say it will lower how much you pay at the store. Critics of the bill say that’s not a guarantee, and that history shows credit card rewards are likely to suffer.
The Credit Card Competition Act of 2023—nicknamed “Durbin 2.0” after its co-sponsor, Sen. Dick Durbin, who enacted debit card regulations following the passage of the Dodd-Frank Act in 2010—would require every credit card transaction to have two networks—one of them not Visa or Mastercard—enabled to route transactions.
One of the lessons my dad taught me early in life was the “law of unintended consequences,” which is that the actions of people — and especially of government — always have effects that are unanticipated or unintended.
Democratic lawmakers like Illinois Sen. Dick Durbin and the Justice Department’s Antitrust Division want to impose new rules for credit-card transactions that would reduce competition, harm consumers and crush small banks.
