Survey commissioned by Electronic Payments Coalition and conducted by Morning Consult shows more than 4 in 5 Americans with credit cards have rewards programs, including 75% of households with incomes less than $50,000.
Small businesses claim they have legitimate concerns that their larger counterparts will be the beneficiaries of lower card acceptance costs should the Credit Card Competition Act become law, argues the Small Business Payments Alliance, a trade organization recently formed by the Electronic Payments Coalition.
I’m the co-owner of Happy Howie’s, a manufacturer of dog treats in Detroit that has been in operation for 12 years. I assure you that running a small business is not easy and rather than helping, the Act will hurt small businesses by taking away credit card rewards, something most owners rely on.
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.
