WASHINGTON–Credit unions have some high-flying allies when it comes to opposing the Credit Card Competition Act being added as an amendment to legislation in Congress.

As the CU Daily has been reporting, the Credit Card Competition Act, which applies to financial institutions of more than $100 billion but critics say it would have the effect of lowering interchange for all institutions, has been added as an amendment to the GENIUS Act in the Senate.

Financial institutions have been joined by major airlines in seeking to have the amendment grounded, saying a reduction in fees charged by Visa and Mastercard on transactions could force them to stop offering frequent flyer miles rewards. for making transactions.

Credit unions have argued the reduced fees could lead to reduced rewards programs, as well, among other criticisms. 

The Signatories

American Airlines, United Airlines, Southwest Airlines and others, including Boeing, Airbus, RTX and GE Aerospace (GE.N), said in a letter to Sens. Dick Durbin (D-IL) and Roger Marshall (R-KS)—the two cosponsors of the CCCA—that the legislation could sharply reduce air travel and harm overall tourism. Also signing the letter were aviation unions, according to Reuters.

Noting the billions of dollars airlines generate in fees from their branded credit cards, Durbin has called the airlines “basically credit card companies that own some planes.” 

By the Numbers

The signatories on the letter told the senators that more than 31-million Americans hold airline travel reward cards and 57% of all frequent flier miles and points issued in 2023 were generated by airline credit card use and nearly 16 million domestic air visitor trips were awarded from points earned through use of an airline-branded credit card in 2023.

Reuters reported that the loyalty programs of Delta, United and American were each valued at more than $20 billion in 2023, according to consulting firm On Point Loyalty.