New Legislation Could Gut Credit Card Rewards and Benefits as We Know Them
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- čas přidán 29. 11. 2022
- Welcome to another episode of TPG Opinions.
You may have heard rumblings about The Credit Card Competition Act of 2022. If passed, it could dramatically change the rewards ecosystem, affecting your ability to collect - and redeem - points and miles toward travel or earn cash back that can offset some of your everyday spending. Clint Henderson breaks down exactly what this legislation could mean for your points and miles game.
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Let's hope this doesn't pass 🙏🏾
So many ordinary little people folks now have access to processing their own credit card transactions for their side hustles, or selling garage sale type items. To the extent to which they personally see the 2.7% to 3%+ weight of these processing fees on their own balance sheets, these processing fees are increasingly perceived as a hidden expense passed along to the consumer in the form of higher prices. So, realize there is growing pressure to regulate them, and prune them back, especially as we are at almost at a point of runaway inflation now in the United States.
On the market side, you’re also seeing a growth of CC processing merchant account systems (such as Clover) that are configured to tack on a 4% fee to your transaction, that YOU would see on the consumer side as you tap your card or phone. In that moment, you do have a choice to tender a different form of payment to avoid that very real cost served up by the banks.
So, just realize that your points, miles, and cash back rewards are pretty much a hunted animal now, and may soon be circling the bowl.
Use cash dumbfk… 😂😂😂 that was too easy wasnt it….save your essay dumbfk
How is this credit card legislation doing in congress?
I understand your position being the “Points Guy.”, this is your lively hood on the line if rewards started drying up. However, the problem is both merchants and banks are literally two sides of the same coin. The only good guy is the consumer, definitely not the banks or merchants. Both crying broke and on the brink of collapse if they pay people a living wage, not gorge on pricing because they can, or provide services to regular working people that are affordable. It is possible to make a profit, and make goods and services affordable and accessible. Merchants are complaining about cost that is passed down to the consumer. The banks are complaining about costs that are being passed to the consumer. Dodd Frank was gutted during the last administration. Several consumer friendly practices started under Dodd Frank. Less regulation and taxes supposed to lower costs for consumers from banks and merchants, it never does. Profits go to shareholders of both banks and merchants. The average consumer loses either way, but you can still get your points and rewards if this fails. If merchants and banks negotiate fairly and in good faith, this wouldn’t even be on the table. You take a position, what’s your idea of the solution?
Retailers never lower prices, so this is only gonna hurt consumers, as a consumer me and my peers have benefited a lot from travel points from credit cards
Good, hope it passes. Swipe fees are insane for businesses. Let credit cards fund their insane perks with interest and annual fees.
Maybe we should require an intelligence test to run for political office.
That's generally regarded as a terrible idea in the political world. The people in power at the time of passing a bill that would require an intelligence test to run for office would be abused to just exclude the opposing party or people with certain beliefs or perspectives. Similar to how tests were used to exclude black people from voting in the US
Old news
This guy fails to mention the benefit that small businesses don't get the 2.25% fee, and we have a harder time competing as we try to remain competitive. Let the big guys keep their prices high, at least others can become more competitive. Capitalism runs on competition, something credit card companies lack.