Credit card rewards are so common these days — so expected, even — that they can seem untouchable. But that could change.
Legislation that’s winding its way through Congress is intended by its sponsors to encourage “competition in electronic credit transactions.” But if lawmakers end up passing the measure, known as the Credit Card Competition Act of 2022, opponents say it could also torpedo the rich rewards and perks that cardholders have enjoyed for years.
“Will consumers lose? Probably,” wrote Brian Riley, director of the credit advisory service at Mercator Advisory Group, in an August post to the Mercator blog. “Their reward programs will dry up, just as they did with debit cards.”
Here’s what’s behind the measure and what it could mean for your wallet if it passes.
