The Electronic Payments Coalition sponsors the next information.  ,
Anyone who has just purchased foods or used a gasoline station has experienced the pinch of rising rates. Some Americans are only cutting their paying by the month, from the smallest items to the smallest purchases.
Many people are even looking for alternative ways to save money, such as putting money aside when purchasing credit cards. Credit cards and cash back incentive programs are popular among users of all earnings, but the most economically disadvantaged households rely on them to make ends meet.
However, despite the clear advantages these plans offer to regular Americans, Sen. Dick Durbin ( D- IL), with the help of Sen. Roger Marshall ( R- KS), seems determined to destroy them. Their proposed funds card legislation would limit card issuers ‘ ability to account rewards programs and have a negative impact on customers of all wages.
These important plans are in jeopardized by the proposed state mandates on how your credit accounts are processed in the Durbin-Marshall costs.
Nearly 70 % of low-to-moderate-income ( LMI ) cardholders use rewards cards, according to a recent study from the Electronic Payments Coalition. Additionally, they have higher rates of interest in cash back cards during the holiday season and the late summer ( back-to-school season ) and November and December ( holiday season ). This suggests that buyers are compelled to cover additional costs during a time of crisis. Cash back cards benefits had the potential to reduce LMI households ‘ planned vacation and back-to-school purchasing costs by up to a third in 2023.
Additionally, the report reveals that LMI users are three to four times more likely to see an increase in their income from returns than upper-income cardholders. For instance, LMI families ‘ benefits result in an annual discount of about 17 cents per gallon at the gas pump, which offers these homes real savings.
By no means is this document unique. Nearly 30 million Americans are dependent on airline-affiliated credit cards to pay for vacation, according to another study from Airlines for America. People can afford additional travel thanks to these plans ‘ much-needed freedom and financial support.
According to the study, airline credit cards boosted the U.S. economy by generating$ 23 billion in economic activity for the country only in 2022, supporting millions of jobs and promoting growth in important industries like travel and tourism.
In spite of these advantages, Sens. While acknowledging that credit card rewards are a crutch for working-class Americans, Durbin and Marshall are threatening to eliminate these reward schemes that some talented people rely on.
Sens. a. at a time when Americans are struggling to recover from the effects of the epidemic and rising prices. Instead of helping to fund the hands of selfish business megastores, who stand to profit the most from these new running demands, Druin and Marshall should prioritize the needs of the people they were elected to serve. Legislators who enact laws that would put our money to the test cannot afford.
In the end, it’s all about standing up for the principles of equality and opportunity that our country and its people deserve. This is n’t just about credit card rewards. Put an end to the Durbin-Marshall credit card bill for good, and ensure that all Americans have access to the advantages and benefits necessary to help make ends meet and combat inflation.
