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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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That may be what the survey says, but I don’t think it will be reality. The travel sites are biased in that they benefit from the complicated way points and miles are earned and spent. It’s in their best interest NOT to have the law changed. I’m a huge travelor and use many of these cards and travel sites. I make good money and pay my accounts in full. People like me are making good choices for us, taking advantage of the system. Poorer people who can’t pay off their credit card may benefit more from the law change. They will have lower interest rates and thus pay less to the credit card companies. Overall their debt burden will most likely go down. Of course that is dependant on their own choices as well. Credit Card processing fees will go down for businesses too. It seems to me that there is a monopoly here going on with the credit card processing that would be best to be broken up and clamped down on. Real freedom and capitalism, not the crony capitalism controlled by big government aligned with big business.
I’m confused by this response. Where have you seen that interest rates will go down? And while businesses will pay less in processing fees, there’s no proof this will benefit customers. In fact, when similar legislation passed for debit cards, consumers were harmed in numerous ways. You’re welcome to read about those effects here: https://awardwallet.com/blog/credit-card-competition-act/
Will this hurt me? Yes. But I’m all for it. The big two need to be stopped