Brian Kelly, founder of The Points Guy, believes Senators Roger Marshall (R-KS) and Dick Durbin’s (D-IL) credit card bill will ax associated rewards programs, which Americans increasingly rely on in Biden’s economy.
Kelly made his claim Tuesday at the American Bankers Association (ABA) Washington Summit about Durbin and Marshall’s bill, the Credit Card Competition Act. The ABA opposes Durbin and Marshall’s credit card bill. The Points Guy is an American travel and financial website that discusses how best to utilize airline points and credit card rewards.
The Points Guy founder said that the bill could impact Americans’ “bottom line” by eliminating their credit cards rewards. He said that well over half of Americans have some form of rewards program.
Durbin and Marshall are pushing their credit card bill, which they hope will inject more competition into payment processing by requiring banks to work with at least one alternative payment network besides Visa and Mastercard, the dominant players in the industry. Critics of the bill contend that it would, in addition to severely compromising the security of payment processing, kill credit card rewards programs.
Kelly explained, “Look at how Americans are struggling, wages have not kept up for many people. Rewards are how you keep it together, whether to get gift cards for family events, or to use for travel. But, to take away a part of Americans’ bottom line, many families have baked in these rewards as part of how they get by.”
File/Brian Kelly, founder of ThePointsGuy.com, smiles during a Bloomberg Television interview in New York, U.S., on Friday, July 8, 2016. (Chris Goodney/Bloomberg via Getty Images)
The Points Guy founder said that credit cards are “extremely lucrative” for Americans, as some credit card companies offer over $1,000 to sign up for their credit card and that does not exist anywhere else in the world.
Kelly also questioned Durbin and Marshall’s move to quash credit card rewards programs while there are many serious problems facing our nation. He also emphasized that Americans on both sides of the spectrum love credit card rewards, noting that his audience may skew “more liberal.”
He said, “I actually think our audience skews a little liberal, urban. And, almost unanimously, consumers, when they realize what this is about, are against it. So, it’s such a tight election year. My question to any legislator is, with all the things we’ve got going on, you want to focus on points? That’s like the one last thing Americans love, right?”
Kelly said that this bill is “terrible for consumers.”
“At the end of the day, we got to let lawmakers know that you are rattling the Hornet’s Nest, when you come for people’s points and travel. You are going to make travel, which is pretty tough these days, even worse. So, is that legislation you want to pass is that your legacy, taking value from consumers and making travel and life harder? When we’re already hit with enough?”
Sen. Jon Tester (D-MT) also slammed claims that the Durbin-Marshall bill would lower costs. During the ABA Summit, Tester said he hopes that the bill would not advance through Congress.
He said that the “last time” Congress had a debate on this topic, “we were told if we did this it’ll save the consumers money.”
He said, “Guess what I noticed? Prices weren’t lowered one damn penny.”
Sean Moran is a policy reporter for Breitbart News. Follow him on Twitter @SeanMoran3.
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