Industry Insights

Durbin-Marshall Credit Card Competition Act Threatens Airline Rewards Programs

August 01, 2023

U.S. Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) introduced legislation that would threaten airlines’ extremely popular rewards programs.

Consumers love their airline rewards credit cards. Every time they shop, they’re accumulating points to redeem for a flight, vacation or other reward. There’s no better feeling than finally booking that vacation on points.

But the Durbin-Marshall bill would completely change that.

The Credit Card Competition Act would eliminate consumer choice over which network credit transactions are routed, increasing complexity and confusion. The legislation would unnecessarily increase the cost associated with participating in these rewards programs, harming carriers’ ability to reward their most enthusiastic customers’ loyalty and putting the viability of these programs at risk.

Rewards cards that allow customers to earn loyalty credits every time they shop are among the most popular financial products in the marketplace. The Federal Reserve estimates that 84% of credit cardholders have a rewards card. Further, 97% of total credit card spending is charged to rewards accounts, and nearly three-fourths of rewards credit cardholders redeemed their resulting rewards within the past year.

Call your lawmaker today and tell them to oppose the Durbin-Marshall Credit Card Competition Act.