Electronic Payments Coalition Executive Chair Richard Hunt issued a statement on the value of credit card rewards following a joint hearing held by the Consumer Financial Protection Bureau (CFPB) and the Department of Transportation (DOT). The hearing, requested by Senators Roger Marshall (R-Kan.) and Dick Durbin (D-Ill.), focused on credit card and airline reward programs.
Hunt's statement expressed concern that the Senators' request was an attempt to weaponize the federal government against American companies opposing their proposed credit card mandates. He said, “Millions of Americans, especially low-to-moderate income Americans, rely on credit card rewards to help pay for groceries, gas, back-to-school supplies and trips to see loved ones. Not only do individuals and families depend on credit card rewards, they are also vital to local communities and tourism jobs across the country. Rewards from the 30 million cobranded airline cards Americans use every day generated $23 billion in economic activity.“But, this hearing is not about finding the facts, it was political retribution and a weaponization of the federal government against American companies opposing the Durbin-Marshall Credit Card Bill.”
In addition to Hunt's statement, EPC released a new report examining how American consumers utilize reward credit cards. The study found that the share of credit cards offering rewards is nearly identical across income brackets and that cardholders earn rewards at virtually equal rates regardless of income. The report also highlighted proposals restricting card issuers’ ability to offer reward credit cards would adversely impact cardholders of all incomes.
The EPC advocates for investing in new technologies and legislating national data security standards as means to create a stronger payment system.