Protect Your Points - The Credit Card Competition Act of 2023

[alaskanseminole]

What say you, HROT?

Proposed legislation in the U.S. House and Senate could devastate the future of credit card points including cash back and travel rewards, while putting your financial security at risk.

WHAT'S GOING ON?
Credit card issuers use payment networks like Visa and Mastercard to process charges to your card. Using these robust networks for payments secures your information and charges the merchant an interchange fee.

The Credit Card Competition Act of 2023 would change that. If it becomes law, that same payment could move to a cheaper, less secure network that sacrifices your security. As a result, banks that issue credit cards would have less ability to fund loyalty programs, secure their networks, and innovate their payment technology.

Learn more from The Points Guy Brian Kelly in this video from CNBC:

HOW IT COULD IMPACT YOU
Higher fees + fewer credit card rewards for consumers
A portion of credit card transaction fees goes toward funding reward programs and card perks. If this legislation passes, credit card issuers would likely cut back on benefits they offer to cardholders.

Increased risk for identity theft + security issues
This legislation not only has the potential to impact your points and perks — it could impact your security when shopping. Existing payment networks invest millions of dollars in customer security, so allowing retailers to select newer, cheaper and unproven providers could put your personal information at risk.

Protect Your Points - The Points Guy

Proposed legislation in the U.S. House and Senate could devastate the future of credit card points including cash back and travel rewards, while putting your financial security at risk.

thepointsguy.com

 

[The Tradition]

I've long been surprised that Congress hasn't declared all the credit card rewards to be taxable income... especially the "cash back" variety.

 

[NoleATL]

I've long been surprised that Congress hasn't declared all the credit card rewards to be taxable income... especially the "cash back" variety.

That is because Congress benefits from them

 

[alaskanseminole]

I've long been surprised that Congress hasn't declared all the credit card rewards to be taxable income... especially the "cash back" variety.

I love my Marriott Bonvoy card. I get several free stays per year and the perks are quite nice. I put all travel related expenses on it.

 

[Moral]

I've long been surprised that Congress hasn't declared all the credit card rewards to be taxable income... especially the "cash back" variety.

I always thought of it more of a discount that they are paying you back in cash for marketing purposes.

 

[LuciousBDragon]

What say you, HROT?

Proposed legislation in the U.S. House and Senate could devastate the future of credit card points including cash back and travel rewards, while putting your financial security at risk.

WHAT'S GOING ON?
Credit card issuers use payment networks like Visa and Mastercard to process charges to your card. Using these robust networks for payments secures your information and charges the merchant an interchange fee.

The Credit Card Competition Act of 2023 would change that. If it becomes law, that same payment could move to a cheaper, less secure network that sacrifices your security. As a result, banks that issue credit cards would have less ability to fund loyalty programs, secure their networks, and innovate their payment technology.

Learn more from The Points Guy Brian Kelly in this video from CNBC:

HOW IT COULD IMPACT YOU
Higher fees + fewer credit card rewards for consumers
A portion of credit card transaction fees goes toward funding reward programs and card perks. If this legislation passes, credit card issuers would likely cut back on benefits they offer to cardholders.

Increased risk for identity theft + security issues
This legislation not only has the potential to impact your points and perks — it could impact your security when shopping. Existing payment networks invest millions of dollars in customer security, so allowing retailers to select newer, cheaper and unproven providers could put your personal information at risk.

Protect Your Points - The Points Guy

Proposed legislation in the U.S. House and Senate could devastate the future of credit card points including cash back and travel rewards, while putting your financial security at risk.

thepointsguy.com

This could make me depress.

Chase’s program has worked well for me over the years.

 

[alaskanseminole]

This could make me depress.

Chase’s program has worked well for me over the years.

 

[alaskanseminole]

Well, signing that petition actually contacts good ole Ted Cruz. Here's the response I received this morning:



Thank you for contacting me regarding the Credit Card Competition Act of 2023 (S. 1838). Input from fellow Texans significantly informs my decision-making and empowers me to better represent our state.

As you may know, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) introduced S. 1838 on June 7, 2023. Under the bill, the Federal Reserve would be directed to issue regulations that will require certain credit card networks to allow third parties to process transactions over the network’s payment system. Further, the bill would require the Federal Reserve to identify which third party networks are “owned, operated, or sponsored by a foreign state entity.”

The Credit Card Competition Act has been referred to the Senate Committee on Banking, Housing, and Urban Affairs, of which I am not a member. I intend to monitor this legislation closely and will continue to weigh the views of my constituents as this bill progresses through the legislative process. Should this bill or a related measure come before the full Senate, rest assured, I will keep your views in mind.

Thank you again for sharing your views with me. Please feel free to contact me in the future about any issue important to you or your family. It is an honor to serve you and the people of Texas.



For Liberty,

Ted Cruz
United States Senator

 

[TC Nole OX]

Well, signing that petition actually contacts good ole Ted Cruz. Here's the response I received this morning:



Thank you for contacting me regarding the Credit Card Competition Act of 2023 (S. 1838). Input from fellow Texans significantly informs my decision-making and empowers me to better represent our state.

As you may know, Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) introduced S. 1838 on June 7, 2023. Under the bill, the Federal Reserve would be directed to issue regulations that will require certain credit card networks to allow third parties to process transactions over the network’s payment system. Further, the bill would require the Federal Reserve to identify which third party networks are “owned, operated, or sponsored by a foreign state entity.”

The Credit Card Competition Act has been referred to the Senate Committee on Banking, Housing, and Urban Affairs, of which I am not a member. I intend to monitor this legislation closely and will continue to weigh the views of my constituents as this bill progresses through the legislative process. Should this bill or a related measure come before the full Senate, rest assured, I will keep your views in mind.

Thank you again for sharing your views with me. Please feel free to contact me in the future about any issue important to you or your family. It is an honor to serve you and the people of Texas.



For Liberty,

Ted Cruz
United States Senator

“For Liberty”

What a joke

 

[fredjr82]

The Credit Card Competition Act of 2023 would change that. If it becomes law, that same payment could move to a cheaper, less secure network that sacrifices your security.

They already have all of those numbers when they breached Target, Home Depot, Equifax, etc.

Also, I've always kind of found travel rewards funny for CCs. Hey spend a shit ton of money and we'll give you a free flight. Spend a fraction of the cost, take the flight, and just pay for it yourself. I guess if you're using a personal card as a business expense you're getting reimbursed on it makes sense, but I just never saw the allure of it.

Get 60,000 extra miles if you make a $4000 purchase in the first 3 months!! I can get a lot of places for $4k.

 

[IAFB2021Champs]

I've long been surprised that Congress hasn't declared all the credit card rewards to be taxable income... especially the "cash back" variety.

Maybe for the time being, they thought the taxes on the item you were purchasing with your free rewards was enough.
I’m sure they are working on a way to get more money that isn’t theirs.

 

[alaskanseminole]

They already have all of those numbers when they breached Target, Home Depot, Equifax, etc.

Also, I've always kind of found travel rewards funny for CCs. Hey spend a shit ton of money and we'll give you a free flight. Spend a fraction of the cost, take the flight, and just pay for it yourself. I guess if you're using a personal card as a business expense you're getting reimbursed on it makes sense, but I just never saw the allure of it.

Get 60,000 extra miles if you make a $4000 purchase in the first 3 months!! I can get a lot of places for $4k.

Think of it this way. I'm going to make purchases (airline tickets, coffee, groceries, hotel stays, etc.) regardless of whether or not I pay with a debit card, cash or a credit card. If Marriott Bonvoy wants to give me points for making purchases I'm making no matter what, then why not take advantage of it. I put all vacation expenses on my Bonvoy card and each year I get at least 2 free hotel stays (minimum), plus early/late check in.

When it comes to groceries and gas, I have to have those items. I use the AMEX Blue card. I get 6% back on my grocery purchases and 3% back on gas. The card costs $95 per year and each December I have enough cash-value points to pay 1/2 to 2/3d's of the bill each Christmas. That's free money IMO.

I pay each of those cards off each month and never pay interest.

 

[alaskanseminole]

“For Liberty”

What a joke

I chuckled at that too (which is why I left it in my post).

 

[alaskanseminole]

Thank you for contacting me regarding interchange fees. I appreciate having the benefit of your comments on this important matter. As you know, when a consumer uses a debit or credit card to pay for a product, the merchant incurs an interchange fee proportional to the size of the transaction. Interchange fees are charged and partially obtained by credit card networks, and the remainder of the payment is passed along to the cardholders' and merchants' banks. These fees were established to compensate issuing banks and credit card networks for the cost of processing and authorizing card transactions. Section 1075 of the Dodd-Frank Wall Street Act (P.L. 111-203), better known as the "Durbin Amendment" imposes limits on interchange fees charged to merchants for debit card purchases and requires the Federal Reserve to enforce these limits. I opposed the Durbin Amendment because of my concern that government intervention in the marketplace, such as setting price controls or mandates, would have unintended consequences that undermine private sector innovation and limit consumer choice. Likewise, I have concerns that the Credit Card Competition Act (S.1838) would have similar negative consequences for consumers and the marketplace. I recognize that it is important to strike a balance between decreasing costs for consumers and small businesses while also ensuring federal government regulations do not stifle competition. I understand consumers are facing record inflation and the current cost of doing business is a challenge for Texas employers. Inflation is near a 40-year high and working families have fallen further behind as prices rise faster than paychecks. Unfortunately, the Biden Administration continues to advocate for policies that discourage work, fuel inflation, and impose crippling tax increases on working Americans. I am honored to represent Texas in the United States Senate, and I will keep your views in mind should the Senate consider legislation that expands the Durbin Amendment. Please do not hesitate to contact me if I can ever assist you. Sincerely, JOHN CORNYN United States Senator