Congress is considering a new law that could make your favorite credit card rewards disappear — no more free flights, no more cashback, and higher fees for everyone.
Here’s what you need to know.
What Is the Credit Card Competition Act?
The Credit Card Competition Act (CCCA) aims to increase competition in the credit card processing market.
Right now, vendors have two main options: Visa and Mastercard. The law would mandate that banks give merchants more options for processing transactions.
Whenever you use a credit card, merchants pay fees to that payment network. The CCCA would allow merchants to process through a less-expensive network if they wanted.
Congress sees this act as a way to lower merchant costs, claiming it will benefit consumers through reduced prices.
But some experts say the law could impact your credit card rewards programs, since those fees directly fund your ability to earn points and miles.
The real beneficiaries
Proponents of the bill claim it’s designed to lower costs for small businesses, but the true beneficiaries of this legislation could be the Targets, Amazons, and Walmarts of the world.
By cutting the fees they pay to credit card companies, these mega-corporations stand to increase their profits.
Unfortunately, this comes at the expense of everyday consumers who rely on the security and rewards provided by established credit card networks.
While Vice President-Elect J.D. Vance initially sponsored the CCCA, he has reportedly backed away from the bill. It remains to be seen how the incoming Trump administration will approach the proposed legislation.
What Does It Mean for You If the CCCA Takes Effect?
If the proposed bill passes and is signed into law, it could significantly impact your day-to-day finances.
Credit card rewards could disappear
One of the primary concerns with the proposed CCCA is that it could lead to the disappearance of popular credit card rewards.
If the CCCA becomes law, then credit card issuers would likely cut back on benefits like free flights, free hotel stays, cashback, and more.
For travelers who are used to maximizing their spending, this could leave us with less value from our credit card usage.
Increased security risks
Credit cards have systems in place to alert you to potential fraud — giving you peace of mind along with a convenient payment option.
However, if passed, the CCCA could undermine this security. Cheaper, untested networks may not invest in security to the same extent as established players like Visa and Mastercard.
This could mean your personal data and financial information are at greater risk of breaches and fraud. The reliability and safety of your transactions could be compromised.
Higher costs
As banks lose funding from secure networks, the costs could be passed on to cardholders like you.
This means higher fees on your credit cards, inflating the cost of almost everything. Instead of saving money with your rewards, you could find yourself paying more out of pocket for everyday purchases and services.
Take Action
If you’ve ever used rewards to offset the cost of gas, groceries, or travel, you know how valuable they are. We need to make sure Congress understands this too.
Join thousands of others in telling Congress to vote “NO” on the Credit Card Competition Act.
Your voice matters more than ever. Protect your points, your finances, and your security by signing the petition. It takes less than 30 seconds and can make a big difference.
Sign the petition now: protectyourpoints.com
Was there an issue with your flight?
We read the fine print so you don't have to! Take our Flight Rights Quiz to learn more about the compensation the airline may owe you if your flight was delayed or canceled!
Learn With Erika
- Free Travel Secrets Workshop
- Learn how to use the fine print to book your next vacation practically for free with Erika's step-by-step system
- Free 5 Day Investing Challenge
- Learn how to get started as a beginner investor and make your first $10,000
- Free 5 Day Savings Challenge
- Discover how you can save $1,000 without penny pinching or making major life sacrifices
- Join Erika Kullberg Insiders
- Ask investing questions, share successes and participate in monthly challenges and expert workshops
