"Proposed Bill Threatens Credit Card Rewards Programs by Targeting Retailer 'Swipe Fees'"
Lawmakers in Washington, D.C. are considering a bill called the Credit Card Competition Act of 2023, which aims to reduce the "swipe fees" that retailers pay for credit card transactions. While this could benefit smaller retailers by lowering costs, it may jeopardize credit card rewards programs that rely on these fees to fund their offerings. Consumers, who earn billions of dollars in rewards annually, are concerned about the potential loss of these lucrative programs, which provide cash back or travel benefits. The bill's impact on consumers and retailers is a subject of debate, with some arguing that reduced fees would lead to lower prices, while others worry about the consequences for families and the potential for fraud protection to be affected.