Durbin and Marshall Putting Working-Class Americans at Risk

The following content is sponsored by American Commitment.

It’s no secret that, as a whole, Americans have struggled to keep up with rising costs these last few years. Soaring prices for groceries, gas, and other expenses have made it difficult for families to afford the same essentials they could purchase with ease a few years ago.

With summer coming in hot, families are looking at ways to take a needed vacation, attend a concert, or send their kids to camp now that the school year is over.

Many consumers have historically relied on credit card rewards and loyalty points to offset the costs of these activities. Consumers of all incomes and financial backgrounds take advantage of these reward programs, but working-class Americans rely on them the most to pay for things they otherwise wouldn’t be able to afford.

Senators Dick Durbin (D-IL) and Roger Marshall (R-KS), however, seem to have forgotten the importance these rewards in helping families make ends meet. Their proposed credit card legislation would restrict card issuers’ ability to fund rewards programs, financially harming cardholders of all incomes.

A new study found that nearly 70 percent of working-class American cardholders utilize rewards cards. While all cardholders prefer “cash-back” rewards, Americans earning less than $60,000 a year utilize them the most, with their usage spiking during July and August (back-to-school season), as well as November and December (holiday season). As families look to offset extra expenses during vulnerable financial periods, they turn to rewards benefits to offset costs. If this harmful legislation is passed, this will no longer be possible.

The report also shows the boost in income from rewards redeemed is three to four times larger for working-class cardholders than for upper-income cardholders. For example, the rewards accumulated by working-class families translates to approximately a 17-cent per gallon discount at the gas pump annually, offering genuine savings for working-class households.

Under Senators Durbin and Marshall’s proposed credit card bill, everything will cost more because working-class families will lose their credit card rewards. The study showed that while cardholders of all backgrounds use travel rewards, working-class groups redeem more than one-fifth of their rewards through travel, subsidizing the costs of their trips.

Americans depend on airline-affiliated credit cards to afford travel. The points or miles accumulated over time from these cards allow the cardholder to receive perks like class upgrades, access to airport lounges, extra baggage allowance, priority booking, and even free flights. These perks are huge deciding factors for working-class families planning vacations.

Despite the numerous benefits of these programs, Senators Durbin and Marshall still want to pass a policy that will do more harm than good for hard-working, working-class families.

Millions of Americans could also lose access to credit cards entirely. In Europe, which has regulations similar to the Durbin-Marshall proposal, less than 50 percent of adults have credit cards, versus more than 80 percent of American adults.

Senators Durbin and Marshall need to prioritize the people they were elected to serve in these challenging financial times – not put them further at risk.

The American working class deserves better than this damaging legislation. We must put an end to the Durbin-Marshall credit card bill once and for all, ensuring all Americans have access to the rewards and benefits they need to survive and – at least occasionally – be able to take a vacation.