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Over 70% of Americans used credit card rewards to fund their travels in 2023, according to a new study from the U.S. Tourism Economy Alliance. An even higher number: Over 75% of Americans have a credit card that earns travel rewards. However, these rewards could change significantly or even go away if a new law passes in the U.S. The effect? People say they'll travel less.
With all of the big-picture discussions that have many zeroes, complex terms, and both claims and counter-claims, the discussion of the proposed Credit Card Competition Act (CCCA) rarely focuses on what it means for real people and how they use these rewards. A new study might have more to say.
Survey Respondents Say They'll Travel Less if CCCA Passes
In a new survey of 2,000 people across spectrums of the U.S. population, nearly 80% of participants said they have a travel rewards credit card. Among those households, 91% say they “use their rewards most or all of the time for non-business travel.”
Across income groups, the majority (74%) of respondents said their points and miles have helped them travel in ways they couldn't afford otherwise. And this element means respondents wouldn't travel as much if they lost access to these rewards. Why would they lose their rewards? That's an often-touted side effect of the proposed Credit Card Competition Act that would amend the Electronic Fund Transfer Act.
What You Can Do
To be clear, the AwardWallet editorial team is strongly against this proposed legislation, based on what we've seen from similar action in the past: the so-called “Durbin Amendment” of 2010. Rewards on debit cards all but went away, among other negative effects for working-class Americans.
If you want to share your opinion about the Credit Card Competition Act, here's what you can do.
First, you can sign a petition at Hands Off My Rewards, which is a project of the Electronic Payments Coalition. Beyond that, you can share it with others to add their signatures: https://bit.ly/3RrlNBV.
Additionally, contact your representative and your senators. You can find information for your elected officials here.
You can call or email them stating you're against this legislation, encouraging them to vote against the Credit Card Competition Act. Since your elected officials likely have more than one office, leaving messages at home and D.C. offices could be worthwhile.
Final Thoughts
We're big fans of travel rewards; they can unlock travel that wouldn't be possible if you had to pay cash. While millions of Americans depend on these credit card rewards, they could be in jeopardy if a new law mimics a prior version that applied to debit cards. And a new study confirms what we've suspected: People do, in fact, depend on these rewards and would travel less if they lost them. That's not a future we hope to see.
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