The Sconi

The Points Guy has reported that certain U.S. senators are attempting to introduce the Credit Card Competition Act as a "poison pill" amendment in upcoming congressional legislation. This information was shared in a post on X.

According to Congress.gov, Senate Bill 1838, known as the Credit Card Competition Act, aims to enforce multiple routing options for credit card transactions to enhance competition among networks. The bill intends to lower merchant fees and challenge the market dominance of Visa and Mastercard. The proposal has ignited considerable debate regarding its potential effects on consumers and rewards programs.

The Nilson Report indicates that, as of 2023, Visa and Mastercard accounted for approximately 42% and 22% of U.S. credit card purchase volume, respectively. These networks operate independently and compete for market share through pricing strategies and partnerships. Together, they hold a significant portion of U.S. card-based transactions.

The Electronic Payments Coalition has expressed concerns that routing mandates under the Credit Card Competition Act could diminish consumer rewards and heighten fraud risks. Following the implementation of debit routing mandates, several Wisconsin banks reportedly ended or reduced rewards programs. The group cautions that similar consequences might arise with credit card regulation.

The Points Guy is a travel and credit card rewards website established in 2010, dedicated to assisting consumers in maximizing points, miles, and loyalty programs. It offers news, reviews, and strategies related to credit card usage, travel deals, and reward redemptions. The brand has grown into a prominent voice in the travel and personal finance sectors, attracting millions of monthly readers.