Latest news with #DickDurbin
Bloomberg
4 hours ago
- Business
- Bloomberg
Credit Card Swipe Fee Fight Complicates Stablecoin Bill Passage
By and Paige Smith Save An effort by retailers and their allies in the Senate to mandate competition to Visa Inc. and Mastercard Inc. in credit card processing has complicated efforts to swiftly pass the stablecoin bill supported by the crypto industry and President Donald Trump. Kansas Republican Roger Marshall has proposed the amendment, backed by Illinois Democrat Dick Durbin, who previously led a successful bipartisan effort to reduce debit card fees. The credit card competition measure had the backing of Vice President JD Vance when he was a senator as well as other populist-minded Republicans.
Yahoo
8 hours ago
- Business
- Yahoo
Airlines and planemakers warn that credit card legislation could end frequent-flier rewards
Several airlines and planemakers have written to senators opposing credit-card legislation. They say a proposed amendment could mean they stop offering rewards credit cards. And the subsequent lost revenue would mean "a contraction in airline activity and jobs." Airlines, labor unions, and manufacturers have written to senators warning that a bill about credit cards being proposed by senators could damage the aviation industry by weakening airline loyalty programs. United Airlines, American Airlines, Southwest Airlines, Airbus, and Boeing are among the signatories of Monday's letter. The campaign, led by the trade group Airlines for America, takes aim at legislation proposed by Senators Roger Marshall and Dick Durbin. Their amendment to the crypto-focused GENIUS Act hopes to expand competition for credit card providers and lower swipe fees. It's been supported by retailers, including the National Retail Federation, but has faced backlash from financial institutions. Credit cards also play a significant role for airlines. "A lot of people call airlines credit card companies with wings," TJ Dunn, a points guru and editor in chief at the Prince of Travel, previously told Business Insider. Co-branded credit cards are a cash cow for many airlines, allowing customers to build up frequent-flier points or miles. Monday's letter cites research from Airlines for America that says over 31 million Americans have airline travel reward cards, generating around $25 billion in economic activity in 2023. It adds that 57% of all frequent flyer miles or points issued in 2023 were generated by airline credit card use. "Americans value and enjoy credit card rewards programs because they reward consumers for dollars that they would be spending no matter what," the letter says. "Many may be unpleasantly surprised if Congress disrupts those programs." It warns that the Durbin-Marshall amendment could see airlines stop offering rewards credit cards. Unions, including those representing pilots, flight attendants, and Boeing workers, have signed the letter, too. That's because it says the effect on loyalty programs would result in fewer flights and therefore "a contraction in airline activity and jobs." It adds that lost revenue means airlines would struggle to meet existing commitments to their workers, and "certainly complicate existing or future collective bargaining negotiations." The letter also says airlines would have less money to spend on buying new planes. Durbin has said that the legislation would save merchants and consumers an estimated $15 billion each year, while businesses pay more than $100 billion in swipe fees annually. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
9 hours ago
- Business
- Business Insider
Airlines and planemakers warn that credit card legislation could end frequent-flier rewards
Airlines, labor unions, and manufacturers have written to senators warning that a bill about credit cards being proposed by senators could damage the aviation industry by weakening airline loyalty programs. United Airlines, American Airlines, Southwest Airlines, Airbus, and Boeing are among the signatories of Monday's letter. The campaign, led by the trade group Airlines for America, takes aim at legislation proposed by Senators Roger Marshall and Dick Durbin. Their amendment to the crypto-focused GENIUS Act hopes to expand competition for credit card providers and lower swipe fees. It's been supported by retailers, including the National Retail Federation, but has faced backlash from financial institutions. Credit cards also play a significant role for airlines. "A lot of people call airlines credit card companies with wings," TJ Dunn, a points guru and editor in chief at the Prince of Travel, previously told Business Insider. Co-branded credit cards are a cash cow for many airlines, allowing customers to build up frequent-flier points or miles. Monday's letter cites research from Airlines for America that says over 31 million Americans have airline travel reward cards, generating around $25 billion in economic activity in 2023. It adds that 57% of all frequent flyer miles or points issued in 2023 were generated by airline credit card use. "Americans value and enjoy credit card rewards programs because they reward consumers for dollars that they would be spending no matter what," the letter says. "Many may be unpleasantly surprised if Congress disrupts those programs." It warns that the Durbin-Marshall amendment could see airlines stop offering rewards credit cards. Unions, including those representing pilots, flight attendants, and Boeing workers, have signed the letter, too. That's because it says the effect on loyalty programs would result in fewer flights and therefore "a contraction in airline activity and jobs." It adds that lost revenue means airlines would struggle to meet existing commitments to their workers, and "certainly complicate existing or future collective bargaining negotiations." The letter also says airlines would have less money to spend on buying new planes. Durbin has said that the legislation would save merchants and consumers an estimated $15 billion each year, while businesses pay more than $100 billion in swipe fees annually.
Time of India
19 hours ago
- Business
- Time of India
US Airlines Credit Card Fees: US airlines oppose credit card fee crackdown they say could imperil free flight offers, ET Infra
Advt Advt Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. Major airlines said on Monday they oppose a new effort to advance legislation that would reduce fees charged by Visa and Mastercard on transactions, saying it could force them to stop offering rewards credit cards that give consumers frequent flyer miles for making Airlines, United Airlines, Southwest Airlines and others including planemakers Boeing, Airbus, RTX and GE Aerospace , said in a letter to senators the legislation sponsored by Senators Dick Durbin and Roger Marshall could sharply reduce air travel and harm overall tourism. Also signing the letter were aviation generate billions of dollars annually in fees for branded credit cards. Durbin has called the airlines "basically credit card companies that own some planes."The airlines argue the reduction in swipe fees would make it impossible to offer rewards and point to a 2010 law aimed at debit card fees that they say nearly eliminated rewards debit successfully defeated efforts in 2023 to pass the measure but it could be attached to a cryptocurrency bill under consideration this a Democrat, previously said the measure co-sponsored with Republican Marshall could save merchants and consumers $15 billion annually in fees for credit card transactions, while businesses pay more than $100 billion in so-called swipe fees and Marshall did not immediately respond to requests for letter said over 31 million Americans hold airline travel reward cards and 57 per cent of all frequent flier miles and points issued in 2023 were generated by airline credit card use. Nearly 16 million domestic air visitor trips were awarded from points earned through use of an airline-branded credit card in year, the Biden administration Transportation Department opened an inquiry ordering American, Delta Air Lines, Southwest and United to provide records and submit reports to ensure consumers do not face unfair, deceptive, or anticompetitive carriers relied on these programs, which have tens of millions of members, for revenue and to raise funds during the COVID-19 pandemic when travel demand programs of Delta, United and American were each valued at more than $20 billion in 2023, according to consulting firm On Point Loyalty.
CBS News
a day ago
- General
- CBS News
Illinois lawmakers mark June 6 Wear Orange Day in honor of Hadiya Pendleton
Illinois lawmakers are marking a day in the memory of Hadiya Pendleton. She was shot and killed at Harsh Park, a block away from King College Prep High School, in 2013. The shooting happened just days after she marched in former President Barack Obama's 2013 Inauguration Day parade. Lawmakers are designating June 6 as Wear Orange Day. It would be part of a Gun Violence Awareness Month resolution and recognizing Hadiya nationally. Senators Dick Durbin, Tammy Duckworth, and Robin Kelly introduced the resolution on Monday, which is Hadiya Pendleton's 28th birthday. Orange, also her favorite color, symbolizes safety and has become a rallying cry in Hadiya's honor.
