Lawmakers Are Trying to Kill Credit Card Rewards

Here's why your credit card perks could be going away September 6th, 2023 [THE POINTS GUY]( [View in browser]( TOGETHER WITH [Partner Logo]( Protect your points [TPG | Hero Image] Join TPG and take action On June 7th, 2023, U.S. Senator Dick Durbin (D-IL) and Senator Roger Marshall (R-KS) introduced legislation (S. 1838) that would enact harmful credit card routing mandates. Their legislation would allow big-box retailers — like Walmart and Target — to process credit card transactions based solely on what is cheapest for them without regard to the value that consumers derive from rewards and many other benefits. This would add billions of dollars to the bottom lines of mega-retailers every year. What does this mean? Simply put, S. 1838 would kill the funding for credit card rewards programs and transfer your hard-earned cash back, airline miles, and hotel points from your pocket — to the pockets of big-box retailers. Not only would consumers lose out on rewards programs, but the proposed legislation would also weaken payment security and fraud protections. If the big-box retailers are able to choose cheaper, less safe credit card processing networks, it would expose your private payment information to foreign networks in China and Russia. Big-box retailers and their lobbyists in DC are trying to convince consumers that S. 1838 would lead to lower prices for consumers. However, we know that isn’t true because when similar legislation was passed in 2010 to enact routing mandates on debit cards, the Federal Reserve Bank of Richmond reported that only 1% of retailers lowered their prices while 22% actually increased prices. What’s the status of the bill? While the proposed legislation was blocked from being attached as an amendment to this year’s National Defense Authorization Act, the fight is far from over. Senator Marshall has promised a vote on S. 1838 by September, which means they will try and attach it to another piece of legislation in the near future. What can you do? If you like credit card points and rewards, you should [reach out to your lawmaker and voice your concerns]( and protect your points. [Act now]( More from our experts [Here's why your credit card perks could be going away]( Many well-intentioned lawmakers have tried to solve problems, but in the end, created bigger problems. Here's what's happening with the Credit Card Competition Act. [Read more]( [Explaining the Credit Card Competition Act and what it means for your credit card rewards]( The Credit Card Competition Act: Here's where the proposed legislation stands in Congress, and how it could affect credit card rewards. [Read more]( [fb]( [insta]( [yt]( [tw]( [in]( [mail](mailto:hello@thepointsguy.com) You are receiving this email because you opted in at [thepointsguy.com](. Where to find us: The Points Guy 100 5th Ave., 16th Floor New York, NY 10011 USA USA Changed your mind? You can [unsubscribe]( at any time. Advertiser Disclosure: Please view our [advertising policy]( page for more information. THE POINTS GUY © ALL RIGHTS RESERVED 2023