The CEO of United Airlines argued that this is a bad policy that could end credit card rewards programs.
A new bill of the United States Congress about the commissions for use of Credit cards could endanger the mileage programs for frequent passengers of airlines. This is what he warned Scott KirbyCEO of United Airlinesconference call on company results.
“It will end rewards programs of credit cards when it happens, and I think it’s bad policy.”Kirby warned.
What is the law that could endanger mileage programs?
The standard in question is Credit Card Competition Lawproposed by the Senator Dick Durbinof Illinois, through which it is intended to put an end to what Durbin calls an alleged “Visa-Mastercard duopoly” on credit card transactionsseveral international media reported.
It was stated that “Visa and Mastercard they control the 80% of credit card payments in USA and charge merchants transaction fees of between 2 and 3%, according to a summary of the bill.”
The Democratic legislator who presented the project in June stated that the regulations in question “aim to require large American banks that allow use at least one other payment network in addition to Visa or Mastercard in transactions with credit card.”
The project It had already been presented in 2022 by the same official, but now he presented himself again and this time with bipartisan supportincluding Republican and Democratic cosponsors in the Senate and House of Representatives.”
Why might this affect mileage programs?
The problem is that several airlines that are associated with banks to issue miles or loyalty points, they say the bill will cut Visa and Mastercard revenues and will make them less willing to participate in rewards programs.
In that sense, Kirby criticized the bill by Durbin. “Almost everyone has one,” he said. “That’s why I think it would be difficult for Congress to vote, 84% of its voters are going to be upset with the result of that vote,” he added.
Source: Ambito
