In an era marked by uncertainty and economic challenges, it is imperative that our lawmakers make informed decisions that prioritize the well-being of American citizens and the growth of our economy.
S.1838, named the Credit Card Competition Act—which others call the “Big Box Bill”—would force large banks to offer merchants a credit card-processing alternative to the networks dominated by Visa and Mastercard, with the goal of lower fees. However, small business owners who travel for work—like me, as well as many colleagues—have substantial concerns about its potential repercussions.
While the bill may appear to target fairness and competition, a closer examination reveals that it could inadvertently favor large, big-box retailers at the expense of customers and the credit card benefits they cherish.
One of the most glaring issues with the “Big Box Bill” lies in its potential to strip consumers of valuable rewards, such as airline miles. These miles have become more than just a perk; they have become essential to many individuals’ financial strategies—including mine. For frequent travelers, especially business travelers like me, airline miles represent hard-earned rewards that enable us to explore new destinations, reconnect with loved ones, and create lasting memories—without straining their budgets. The mandates in the bill will likely mean the end of most reward programs.
The connection between credit card rewards, particularly airline miles, and various industries cannot be understated. Airline miles incentivize consumers to travel, bolstering the tourism sector and giving rise to countless business opportunities.
By eradicating these rewards, the bill would inadvertently undermine the growth of these sectors and economic recovery efforts. This could prove particularly devastating given the recent challenges the travel industry has faced here in California, which is still struggling to recover fully from COVID.
Recognizing the potential unintended consequences of implementing such mandates is essential. While the bill purports to level the playing field for small businesses, it carries the long-term risk of further concentrating power in a few global conglomerates. Smaller businesses, which often rely on inflated customer spending thanks to credit card reward programs, might find it challenging to compete long-term with larger companies whose model is more centered on competitive prices and who would benefit most from the new mandates. It’s no secret that Walmart and Target are pushing the bill because of the billions they’d save in credit card fees.
Rather than favoring a few large corporations, lawmakers should prioritize the well-being of ordinary citizens and the various sectors of our economy that rely on credit card rewards to thrive.
Congress must act in the best interests of both consumers and the economy. The proposed legislation, while well-intentioned, fails to consider the broader implications of its actions. Rather than favoring a few large corporations, lawmakers should prioritize the well-being of ordinary citizens and the various sectors of our economy that rely on credit card rewards to thrive. By rejecting this bill, lawmakers can ensure that credit card benefits remain intact; the economy continues to grow; and the interests of citizens—including small business owners like my colleagues and me—are protected.
David Eugene Perry is an award-winning public relations/communications consultant with more than 36 years of experience with clients in both San Francisco and Palm Springs. He is the author of the mystery thriller Upon This Rock, which is currently in screenplay development. He and his husband, Alfredo Casuso, make their full-time home in Palm Springs. Learn more at www.davidperry.com.