https://www.yahoo.com/now/congress-trying-pass-bill-end-230534246.html
I have been trying to make sense of this legislation, and determine if it's the threat to the rewards programs so many of us on the Forum use. I'm hoping some folks here have a handle on interpreting all of this info, and can share their knowledge, so we contact our representatives with our input, if needed. Please help, and thanks in advance!
Based on my (admittedly limited) knowledge of the bill, to me it looks like it would completely upend a large part of the banking system and would fundamentally change how a lot (most?) of consumer activity is conducted. It would be a huge change to daily life.
Credit cards are extremely profitable for some of the most wealthy and influential corporations in the world. My guess is that they would exert a lot of pressure to maintain that very profitable business. My congressperson isn't going to listen to what I say, but when J P Morgan calls them, I have some confidence they'll pick up the phone and listen closely.
So while I hope this proposed legislation does not pass, I'm not that worried about it.
I found this article on the topic helpful:
https://www.nerdwallet.com/article/credit-cards/is-congress-going-to-kill-credit-card-rewards
Its a bad 'solution' in search of a problem to solve.
One article predicts it will pass soon. I also expect the lobbyists are out in full force, but surprised there hasn't been more coverage and awareness.
And-
Who let Visa and Mastercard get so large, to start with???
These idiotic politicians might be winning the hearts and minds of businesses, large and small, but banks are not going to lose that transaction fee money. Guess who is going to subsidize the transaction fee loss...look in a mirror! The banks will make it up somewhere, either in banking fees, the cost of an annual credit card fee or some other hidden cost you the consumer will pay.
As far as the rewards programs, they are not free to you anyway. They feel like it, but remember, you bought something to get the reward. The price you paid includes the points you receive.
Political smoke and mirrors all the way around.
In some states, retailers can't add surcharges or convenience fees. Here are the five states where it's illegal: Colorado, Connecticut, Kansas, Maine and Massachusetts.
While it's illegal for businesses to charge credit card surcharge fees in these states, there are two things to note. In Maine, government entities can impose credit card surcharges. Additionally, all states are allowed to offer cash discounts to avoid these fees. That includes the above five states. Offering a cash discount may encourage more customers to pay with cash, and it can help both the business and the customer avoid additional fees.
so . . . who subsidizes those reward programs?
All a business need to do is insist you pay cash or pay by check; then watch it's business decline and costs to handle checks make credit card fees look like chump change. I get that some credit cards pass reward fees on to the retailer, but in the big picture, those fees are still minor in the total cost picture. A case of worrying about pennies while discouraging the Dollars from coming in the door.
In Canada, merchants can now charge the interchange rate to the customer if they use a credit card to pay. So far, I have only seen one food court vendor implement the surcharge. E.g. price of meal is $11.99. If you use credit card to pay, they add 2%.
Since the lame-duck session is ending very soon, and I have heard nothing about this, I assume that it is a dead duck during the lame duck.
Please government, leave it alone.
It was never voted on during the 117th congress, nor made it out of committee in either the house or the senate.
Died on the vine
