Credit Card Competition Act stalls; no vote expected this session

Critics argue that the bill could harm loyalty programs associated with cobranded credit cards. Airlines for America, representing major airlines like United Airlines and Delta Air Lines, launched a campaign against the legislation. Richard Hunt of the Electronic Payments Coalition criticized the hearing as biased towards large corporate interests.

Proponents claim that increased competition would lower fees for consumers and small businesses. However, a Congressional Research Service report suggests that mandated routing changes may not result in consumer savings.

Opposition from various tourism stakeholders highlights concerns about potential negative impacts on travel rewards programs. The American Bankers Association warned that the bill could increase fraud risks and limit credit availability.

In contrast, Senator Peter Welch argued that Visa and Mastercard fees are burdensome for small businesses despite their reliance on these networks for payment processing.

The European Union's experience with capped interchange fees was cited by Bill Sheedy of Visa as detrimental to consumer rewards programs in Europe.

As of now, supporters encourage Visa and Mastercard to seek voluntary reforms while legislative action remains uncertain. Senator Durbin emphasized bipartisan agreement on addressing these issues but questioned why progress has stalled.