If you love your points, we’ve got some bad news. Right now, there’s a proposed bill in Congress that would cut the credit card cash back and travel rewards programs that Americans know and value. Protect your points now. https://t.co/6aPe9hlFCR pic.twitter.com/Gi9jW3MoNB

— The Points Guy (@thepointsguy) June 6, 2025

What is the reason for such a bill?

do some research and tell us

Probably as likely to pass as an impeachment of Trump. Not gonna happen.

Ghost of Andrew Eaton said:

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If you love your points, we’ve got some bad news. Right now, there’s a proposed bill in Congress that would cut the credit card cash back and travel rewards programs that Americans know and value. Protect your points now. https://t.co/6aPe9hlFCR pic.twitter.com/Gi9jW3MoNB

— The Points Guy (@thepointsguy) June 6, 2025

What is the reason for such a bill?

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Probably to reduce the fees retailers have to pay.

I forget which idiot Democrat submits this bill, but he does it every term.

I'd use my card less and pay cash more if I didn't effectively get the CCTransaction fee the business pays, back with each purchase.

Credit Cards aren't the problem. It's the processor vultures. Businesses have to be able to process the cards, and pay a fee for each. In essence, reward cards just give that to the cardholder. They still make money on interest.

But cash suffers - even though it's much better for businesses to be paid in cash.

I've used the rewards system for a long time - and got a few first-class rides across the pond. And I've also been the guy paying the CC transaction fees. Adjust prices accordingly, move on.

But in the end, this bill if passed would probably keep cash alive a bit longer.

Which is good, cuz when cash is gone, it's the next step in our demise.

2-3 percent processing fees is really cheap from a merchants perspective. Done be mad at Mastercard and Visa, it's the banks issuing credit that are the true vultures.

Hawley and Sanders are working on some bipartisan legislation to cap interest rates. 29% APR is ridiculous.

Perhaps one of a handful of things that can be agreed on.

TheEternalOptimist said:

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Hawley and Sanders are working on some bipartisan legislation to cap interest rates. 29% APR is ridiculous.

Perhaps one of a handful of things that can be agreed on.

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Yeah, I don't know what the legal definition of usury is in terms of interest charged, but if 29% isn't usury they need to change the definition.

TheEternalOptimist said:

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Hawley and Sanders are working on some bipartisan legislation to cap interest rates. 29% APR is ridiculous.

Perhaps one of a handful of things that can be agreed on.

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I don't agree on that and I would benefit from it. If the market dictates someone pays that to be able to get a credit card, so be it. If you don't like it, don't sign up for said CC. Govt interference is NEVER the answer unless the question is "How can I make this situation orders of magnitude worse?".

I don't have any problem with processor fees as they offer a valuable service and benefit to businesses. I do have a problem with the increase in interchange fees that you have zero negotiating power over which are used to pay for credit card rewards. The credit card companies get to offer rewards to customers and stick small business with the bill without any pushback. It's another one of the small cuts that are killing small business.

scoop12 said:

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I don't have any problem with processor fees as they offer a valuable service and benefit to businesses. I do have a problem with the increase in interchange fees that you have zero negotiating power over which are used to pay for credit card rewards. The credit card companies get to offer rewards to customers and stick small business with the bill without any pushback. It's another one of the small cuts that are killing small business.

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Do small businesses have to take credit cards?

SquirrellyDan said:

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2-3 percent processing fees is really cheap from a merchants perspective. Done be mad at Mastercard and Visa, it's the banks issuing credit that are the true vultures.

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Maybe to big retail companies but to small businesses like service providers, 2-3% is not cheap. And why your seeing more and more starting to ad a surcharge to anyone paying with a credit card.

4 said:

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TheEternalOptimist said:

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Hawley and Sanders are working on some bipartisan legislation to cap interest rates. 29% APR is ridiculous.

Perhaps one of a handful of things that can be agreed on.

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Yeah, I don't know what the legal definition of usury is in terms of interest charged, but if 29% isn't usury they need to change the definition.

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Usury is charging anything above the law. In biblical terms it meant charging anything for money loaned.

We shouldn't look at APR either regarding short term loans such as CC's. If I borrow $1000 at 29% APR but pay it off in two months I only paid ~$50 in interest. Thats a hell if a deal when someone is in a bind because a bank won't loan that and it's better than asking mom.

Ghost of Andrew Eaton said:

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scoop12 said:

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I don't have any problem with processor fees as they offer a valuable service and benefit to businesses. I do have a problem with the increase in interchange fees that you have zero negotiating power over which are used to pay for credit card rewards. The credit card companies get to offer rewards to customers and stick small business with the bill without any pushback. It's another one of the small cuts that are killing small business.

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Do small businesses have to take credit cards?

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ONLY if they want to stay in business.

Ag00Ag said:

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SquirrellyDan said:

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2-3 percent processing fees is really cheap from a merchants perspective. Done be mad at Mastercard and Visa, it's the banks issuing credit that are the true vultures.

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Maybe to big retail companies but to small businesses like service providers, 2-3% is not cheap. And why your seeing more and more starting to ad a surcharge to anyone paying with a credit card.

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2-3 percent is extremely cheap for the ability to conduct seamless, fast, secure transactions with no cash changing hands. Businesses aren't forced to accept credit cards, they do so because the benefits far outweigh the transaction fees.

There are certainly benefits but that's not only why businesses accept credit cards. They accept them because not accepting credit cards would cut you off from a significant majority of potential customers. And 2-3% is far from cheap at any level of scale.

I'm a points fanatic. My wife and I have both had Companion Pass on Southwest for a decade and we name our kids as Companions and have done a ton of travel. Not holding my breath they mess with CC incentives.

It staggers me how people can't be disciplined enough to pay off their CC's. I haven't paid interest on a CC ever and put everything I can on them. It's really not that hard.

Same

I always laugh at people who use cash for most purchases. Congrats on being irresponsible and throwing money away.

TheEternalOptimist said:

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Hawley and Sanders are working on some bipartisan legislation to cap interest rates. 29% APR is ridiculous.

Perhaps one of a handful of things that can be agreed on.

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No one is putting a gun to people's heads and say live beyond your means. This is another example of the government getting in the way and saying they know what is best vs letting the market operate.

My concern about lowering it to below 10% like Hawley, Sanders and Pocahontas have previously said is it encourages people to take out more credit card debt if they can get it. On the other hand, it would make it harder for people to get credit card if they have poor credit which a good thing as the issuers aren't being paid enough to take on the risk. .

I'm a hypocrite on this issue. Absolutely an advocate for protecting cash as a FOP because the minute we are forced into USCBDC your freedoms are over.

However, we put everything on CCs. The system is set up that you are a dumbass if you don't. We get several thousand dollars back per year in cash and/or travel we otherwise wouldn't get if not for CC.

I pay off our CC twice a month and haven't paid interest in a couple of decades so it's free money back to us and we get to take advantage of all of the other people that pay that interest in perpetuity.

Ghost of Andrew Eaton said:

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scoop12 said:

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I don't have any problem with processor fees as they offer a valuable service and benefit to businesses. I do have a problem with the increase in interchange fees that you have zero negotiating power over which are used to pay for credit card rewards. The credit card companies get to offer rewards to customers and stick small business with the bill without any pushback. It's another one of the small cuts that are killing small business.

---

Do small businesses have to take credit cards?

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As a small business owner, yes. It would be financial suicide to run a cash only business for most businesses these days.

Ghost of Andrew Eaton said:

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If you love your points, we’ve got some bad news. Right now, there’s a proposed bill in Congress that would cut the credit card cash back and travel rewards programs that Americans know and value. Protect your points now. https://t.co/6aPe9hlFCR pic.twitter.com/Gi9jW3MoNB

— The Points Guy (@thepointsguy) June 6, 2025

What is the reason for such a bill?

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Issuing banks don't like giving away money.

aggie93 said:

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I'm a points fanatic. My wife and I have both had Companion Pass on Southwest for a decade and we name our kids as Companions and have done a ton of travel. Not holding my breath they mess with CC incentives.

It staggers me how people can't be disciplined enough to pay off their CC's. I haven't paid interest on a CC ever and put everything I can on them. It's really not that hard.

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This. I don't even know how much cash I have in my wallet. I guess I do use it for convenience if i buy from some guy in a parking lot but I've got thousands of dollar worth of tools form my points. I love it.

For our business we encourage credit card and online payments by making cash and check virtually impossible to pay with.

Teslag said:

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I always laugh at people who use cash for most purchases.

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You are a better man than I...I silently cuss them out for holding up the checkout line. Only ones worse are those who pay with checks.

SquirrellyDan said:

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2-3 percent processing fees is really cheap from a merchants perspective. Done be mad at Mastercard and Visa, it's the banks issuing credit that are the true vultures.

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This isn't true for fuel marketers. CC fees are a major sore spot as the retail price of fuel going up does not necessarily mean more margin. If you are selling fuel at retail and trying to maintain your CPG as your delivered cost goes up by increasing the street price your CC fees go up because you pay a % on the transaction amount. The industry has been fighting that for decades.

aggie93 said:

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I'm a points fanatic. My wife and I have both had Companion Pass on Southwest for a decade and we name our kids as Companions and have done a ton of travel. Not holding my breath they mess with CC incentives.

It staggers me how people can't be disciplined enough to pay off their CC's. I haven't paid interest on a CC ever and put everything I can on them. It's really not that hard.

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Nice humblebrag.

Some people in a pinch don't have that luxury. Thanks for the tip, Mr. Bezos.

BrazosDog02 said:

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aggie93 said:

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I'm a points fanatic. My wife and I have both had Companion Pass on Southwest for a decade and we name our kids as Companions and have done a ton of travel. Not holding my breath they mess with CC incentives.

It staggers me how people can't be disciplined enough to pay off their CC's. I haven't paid interest on a CC ever and put everything I can on them. It's really not that hard.

---

This. I don't even know how much cash I have in my wallet. I guess I do use it for convenience if i buy from some guy in a parking lot but I've got thousands of dollar worth of tools form my points. I love it.

For our business we encourage credit card and online payments by making cash and check virtually impossible to pay with.

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I avoid any vendor that does't take cash. Cash is King.

FbgTxAg said:

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But cash suffers - even though it's much better for businesses to be paid in cash.

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What evidence do you have to assume this is accurate?

I've worked in retail and as a cashier, granted that was back in the 90s. Using cash slowed down transaction times, required extra manpower, increased security, and additional training. Walmart used to have a room staffed with about four people dedicated to handling cash.

I wouldn't be surprised that, for some firms, the increase in transactions and lowering of overhead was just offset by the interchange fees by credit card companies

JamesPShelley said:

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BrazosDog02 said:

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aggie93 said:

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I'm a points fanatic. My wife and I have both had Companion Pass on Southwest for a decade and we name our kids as Companions and have done a ton of travel. Not holding my breath they mess with CC incentives.

It staggers me how people can't be disciplined enough to pay off their CC's. I haven't paid interest on a CC ever and put everything I can on them. It's really not that hard.

---

This. I don't even know how much cash I have in my wallet. I guess I do use it for convenience if i buy from some guy in a parking lot but I've got thousands of dollar worth of tools form my points. I love it.

For our business we encourage credit card and online payments by making cash and check virtually impossible to pay with.

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I avoid any vendor that does't take cash. Cash is King.

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Cash is stupid for most consumer transactions

We removed cash as a FOP at my old business. It was a cost/benefit decision like you said. It was also risk control measure. If there is no cash in the tiller, then it can't be stolen.

The vast majority of our business was on account so cash FOP was small enough of the overall FOP mix that we axed it totally. It made sense for that business. I hope that doesn't happen to general consumers though.

Admittedly I'm about to paint with a broad brush...

By and large the American consumer has agreed to, in my estimate, at what 1.0-1.5% inflation from merchant absorbed and passed along transaction fees in exchange for airline lounge access, hotel points, or cash at the end of the year.

Ask yourself... Why have no major airlines declared bankruptcy or re m has a major reorganization since beginning a credit card company that flies airplanes on the side? LUV is having issues but that's a different mess...

These fees absolutely hurt small business the most as they tend to use more expensive card platforms and don't have the negotiating power with millions of swipes or taps per day that Walmart has.

Consumers have accepted it because they don't/didnt understand the interplay of these fees with prices. And the in your face consumer benefit and endorphins of points far outshines any pricing increase they take along the way to fund those points.

It's only been very recent that businesses have started offering two prices to consumers - cash or cc. Specs is the first big company I can think of who did this. I'm now seeing it happen in small town businesses as well.

Quote:

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It's only been very recent that businesses have started offering two prices to consumers - cash or cc.

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When the spread is more than 3%, I assume it's because they are hiding revenue and/or paying people under the table (not that I generally care about that stuff)

Rapier108 said:

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I forget which idiot Democrat submits this bill, but he does it every term.

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Is that the same Democrat that is on the no fly list? Just kidding, if Ilhan Omar can still fly, then there is no reckoning for any congress "person".