Sunshine Sentinel

The managing editor of a financial services website wrote that opponents of credit card regulations proposed in Congress said the regulations could “torpedo” credit card rewards programs.

Those credit card regulations are opposed by the Florida Bankers Association (FBA), reported Sunshine Sentinel in May 2024.

“Credit card rewards are so common these days — so expected, even — that they can seem untouchable. But that could change,” wrote Kenley Young, managing editor of NerdWallet, in a Jan. 30 column. “Legislation known as the Credit Card Competition Act, first introduced in Congress in 2022, is described by its sponsors as encouraging ‘competition in electronic credit transactions.’” 

“But if lawmakers end up passing the measure, opponents say it could also torpedo the rich rewards and perks that cardholders have enjoyed for years,” wrote Young.

NerdWallet is a personal finance website that provides information on credit cards, banking, mortgages, insurance, and investing. The site offers financial product comparisons, tools, and calculators to help users make financial decisions. It was founded in 2009 by Tim Chen and Jacob Gibson and is headquartered in San Francisco, California.

Originally sponsored by U.S. Sens. Richard Durbin (D-Ill.) and Roger Marshall (R-Kans.), the so-called Credit Card Competition Act would require banks to offer merchants at least two network options, one of which cannot be Visa or Mastercard, for processing credit card transactions. Opponents to the bill argue that if given the choice, retailers would likely choose cheaper, less secure networks for processing transactions, thereby exposing consumers to increased securities and fraud risks.  

The bill applies to credit cards what a similar measure in 2010, often referred to as the “Durbin Amendment,” applied to debit cards. The 2010 measure was a requirement of the “Dodd–Frank Wall Street Reform and Consumer Protection Act.”

Nationally, the bill could lead to a $227 billion loss in U.S. economic activity and 156,000 lost jobs, according to an analysis conducted for the Electronic Payments Coalition (EPC) by Oxford Economics Research (OER).

OER is a global advisory firm that provides economic forecasting and analysis. The company was founded in 1981 as a commercial venture with Oxford University’s business college. It offers research on economic trends, policy, and industry performance for governments, businesses, and financial institutions. The firm operates offices in various regions, including North America, Europe, and Asia. Oxford Economics produces reports and data covering global and regional economies, industries, and markets.

The EPC is a trade association that represents credit unions, community banks, and payment card networks. The coalition advocates for policies that protect and promote the use of electronic payments.