The phrase “revolving credit line” usually conjures up images of balding bankers, meticulously reviewing detailed loan applications, while bright-eyed prospective borrowers wait on the edge of their seats. Today,
revolving credit lines for consumers take the form of colorful plastic cards that fit neatly in your wallet, and provide access to rewards, concert tickets, and much more. These colorful plastic cards—credit cards — are merely the end of an intricate network that combines consumer loans, account reconciliation, purchase protection, and security that is available to you, worldwide, on a 24-7 basis.

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.