The Independent Community Bankers of America (ICBA) has indicated consumers join the organization in opposing the Credit Card Competition Act, noting the measure would end popular credit card rewards programs.
The ICBA cited findings from a recent Morning Consult poll determining consumers reject the policy change. The poll was conducted between Nov. 16 and Nov. 19, 2022, among a sample of 2008 registered voters, with interviews conducted online and data weighted to approximate a target sample of registered voters based on gender by age, educational attainment, race, marital status, home ownership, race by educational attainment, 2020 presidential vote and
region.
The legislation seeks to bring competition and choice to the credit card network market currently dominated by Visa-Mastercard. According to the bill, the measure would require banks with assets over $100 billion to allow electronic credit transactions to be processed on no fewer than two unaffiliated networks, at least one of which must be outside of Visa-Mastercard.
“ICBA and the nation’s community banks strongly oppose the introduction of the controversial Credit Card Competition Act, anti-consumer legislation that would end credit card rewards program merely to expand the Durbin Amendment’s government-orchestrated transfer of income from low-income households to the nation’s largest retailers,” ICBA President and CEO Rebeca Romero Rainey said. “Americans recognize the legislation for what it is — a bad deal for consumers.”
According to the ICBA, the poll results showed 89 percent of adults receiving credit card rewards say they value the rewards programs; 65 percent of voters expressed ending credit card rewards would impact the economy; 74 percent of voters said changing the technology credit card servicers use would impact the economy; 68 percent believe it would affect inflation; and 61 percent of respondents said consumers would not benefit from overhauling the credit card networks.