The following content is electronic payment federation.
Anyone who has bought groceries or filled up at a gas station recently has felt the pinch of rising prices. From everyday necessities to the occasional splurge, many Americans are cutting back on spending to save money each month.
Meanwhile, many people are looking for other ways to save money, such as relying on credit card rewards to supplement their income. Consumers of all incomes use credit cards and cash-back rewards programs, but the most economically vulnerable households rely on credit cards to make ends meet.
But even though these programs clearly benefit ordinary Americans, Sen. Dick Durbin (D-Ill.) has backed Sen. Roger Marshall (R-Kan.) to support them. In response, they appear determined to undermine these programs.what they proposed was Credit card laws Card issuers’ ability to fund rewards programs may be limited, negatively impacting cardholders of all incomes.
The proposed administration’s Durbin-Marshall bill mandating credit card processing would put these valuable programs at risk.
a new research A study by the Electronic Payments Coalition found that nearly 70% of low-to-moderate income (LMI) cardholders use a rewards card. They also have a stronger preference for cash-back cards, which spikes in late summer (back-to-school season) and November and December (holiday season). This points to the need to offset extra spending during a vulnerable time for consumers. In 2023, cash back card benefits could help LMI households save up to a third on their planned holiday and back-to-school purchases.
The report also shows that for LMI cardholders, the increase in income from redeemed benefits is three to four times greater than for high-income cardholders. For example, the benefits accumulated by LMI families equate to approximately 17 cents per gallon per year at the gas pump, a substantial savings for these households.
This report is by no means unique.According to another study by Airlines for America, nearly 30 million Americans Dependent You can pay for your trip with an airline-affiliated credit card. These programs provide much-needed flexibility and financial relief, allowing families to afford additional travel.
These programs are also boosting the U.S. economy, with survey data showing that airline credit cards will contribute $23 billion in economic activity to the U.S. economy in 2022 alone, support millions of jobs, and increase travel and It has been shown to drive growth in key sectors such as tourism.
Despite these benefits, Sens. Durbin and Marshall know that credit card benefits are a lifeline for working-class Americans, yet these benefits that many hard-working families rely on. They are threatening to take away the program.
At a time when Americans are struggling to recover from the effects of the pandemic and rising daily costs, Sens. Durbin and Marshall are serving elected officials rather than helping line the pockets of greedy mega-store corporations. Priority should be given to the needs of the people who were elected to do so. In order to maximize savings from these new processing obligations. We cannot afford to have legislators enacting policies that will further strain public finances.
After all, it’s more than just credit card perks. It’s about standing up for the values of equity and opportunity that our country and its people deserve. Let’s end Durbin Marshall’s credit card bills once and for all and ensure all Americans get the compensation and benefits they need to make ends meet and fight inflation.
