Posted on 06/02/2025 10:06:27 AM PDT by ProtectOurFreedom
Major airlines said Monday they oppose a new effort to advance legislation that would reduce fees charged by Visa and Mastercard on transactions, saying the bill could force them to stop offering rewards credit cards that give consumers frequent flyer miles for making transactions.
American Airlines, United Airlines, Southwest Airlines and others including Boeing, Airbus and GE Aerospace, said in a letter to senators the legislation sponsored by Senators Dick Durbin (D-IL) and Roger Marshall (R-KS) could sharply reduce air travel and harm overall tourism.
Airlines generate billions of dollars annually in fees for branded credit cards. Durbin has called the airlines "basically credit card companies that own some planes."
(Excerpt) Read more at finance.yahoo.com ...
It has the potential to significantly negatively alter, if not completely eliminate, the world of credit card rewards that we know today. Goodbye "free" perks and airline rewards programs if this passes.
You can always count on Congress to ruin something we all like and that works well.
VISA/Mastercard are simply lying to cover up their overcharging all customers in their monopoly on credit cards.
“Credit card rewards” = higher prices for everything.
There are reasons why many businesses won’t accept American Express.
I’ve gotten hundreds of thousands of miles in rewards but really don’t care much about them as I’ve seen the costs of credit card transaction fees in the retail parts of my businesses.
Neither my favorite coffee nor my favorite barber shop accept credit cards. Those are the only places I have to keep cash in my wallet for.
“Vanity” credit cards.
Wife had a few. All were 30% or better interest. I showed her the rates. Then some other outfit started buying them all up and raised the rates again.
I also told her those same stores will happily take the credit union card with the 10% or more lower rate.
She finally got the message, got rid of all the loyalty cards.
The credit card companies don’t see the train that about to hit them with bitcoin, and other null currency(my phrase for a currency that has nothing behind it but a rare nothing(0+0=0)) But it does make for a far cheaper way to loan money and cut the credit card companies out of the fee market.
We’ve had a very simple policy for over four decades:
1. Don’t spend beyond your means.
2. Charge everything on credit cards to maximize miles, points and cash-back
3. Pay off the credit card every month.
With those simple rules, you can get a lot of rewards. But it’s like not eating too much — it takes discipline.
So they are for higher fees for everyone to protect their little game?
Usury is a powerful tool.
I thought Visa and Mastercard reached a settlement with merchants and agreed on a cap last year...Hopefully this is going nowhere, especially if the rationale was controlling inflation. I don’t personally use a loyalty card for miles but do for status and upgrades and this would make a significant difference in my decision to stick with United.
Interesting; both my coffee shop and barber accept cards, though the barber charges for the privilege, worth the extra buck to me.
I just got the miles for two round trips on a new card which will charge me $99 ten months from now, if I decide to keep it. Good deal for me, I think.
” the barber charges for the privilege”
Once upon a time, the cc companies prohibited merchants from tacking on a surcharge to use their credit card. That seems to have gone by the wayside. We are seeing lots more “processing fees” if you use a credit card.
We charge everything where we can. Unfortunately, the major mobile phone companies no longer take credit cards, only a direct connection to your bank acount via your ATM card! Some utilities do the same thing — ATM only, no credit card.
We’ve gotten new cards with attractive offers, charged the requisite amount for the three month introductory period, and stopped using them. The big sign-on bonuses are very enticing.
As a Southwest credit card holder, SW is doing a good job of screwing it up themselves. If it wasn’t a direct flight to DC, we wouldn’t use them. Now we’ll start looking at other carriers.
Who is this "we" of whom you speak?
And what is your evidence that it "works well?"
Because you think you are getting something "free" that is paid for by the hidden charge of transaction fees you are paying?
We know Durbin is a total scum bucket. What does that make Marshall? Remember when Lankford co-sponsored that so called Border Bill with the despicable Chris Murphy? Republicans never learn. Reaching across the aisle only works if you are a Democrat.
Without transaction fees you wold not have credit cards.
We use SW a lot from Spokane to San Jose and other flights in the west — to LAS, LAX. We don’t fly east much any more...mainly stay in the west.
But only idiots think they are getting something "free" when the credit card companies admit it comes from higher transaction fees and they would have to stop if the fees are capped.
I resent paying for your "free" siht.
I use a credit card, but I pay it off two or three times a month to make sure I never pay any interest, and I ignore all the "free" offers financially ignorant idiots love so much.
The world is FULL of cross-subsidies like that. The start-stop feature in cars? That is the rural people subsidizing urban people. Windmills and solar cells? That is people who used to enjoy low coal and nuclear electricity rates cross-subsidizing the greeniacs. SALT taxes? Low-tax states cross-subsidizing high-tax states. 91% of SALT benefits flowed to six high-tax states (CA, NY, NJ, IL, TX, PA).
It has ALWAYS cost a lot more to deliver electricity and natural gas to expensive-to-serve rural customers. Who do you think pays to build out that infrastructure? Urban ratepayers.
Mass transit urban commuters cross-subsidize suburban and rural commuters.
Paying customers are charged exorbitant rates for air ambulance rides to subsidize rides for indigent or underinsured patients.
Consumers subsidize farmers through higher taxes (for unhealthy foods), while low-income consumers face higher costs for healthier, unsubsidized foods.
Where else would you like to end cross-subsidies?
“Republicans never learn.” - Political truism #1.
“Reaching across the aisle only works if you are a Democrat.” - Political truism #2.
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