Key Points:

• The Credit Card Competition Act could eliminate or significantly reduce credit card rewards programs across the industry if passed into law.
• Historical evidence from the 2010 Durbin Amendment shows debit card rewards disappeared after similar legislation passed, with no meaningful price reductions for consumers.
• The bill recently attempted to attach itself to cryptocurrency legislation but was dropped, though sponsors continue pushing for passage in 2026.

Credit card rewards enthusiasts face a potential threat that could fundamentally reshape the points and miles landscape. The Credit Card Competition Act, sponsored by Senators Dick Durbin and Roger Marshall, has resurfaced in 2026 with renewed attempts to become law through attachment to other legislation.

What Is the Credit Card Competition Act?

The Credit Card Competition Act would expand routing requirements imposed by the Durbin Amendment to credit cards issued in the United States, requiring large banks to offer at least two unaffiliated payment networks on each card. Proponents argue this will increase competition and lower merchant processing fees, which they claim will result in lower consumer prices.

The legislation specifically targets what sponsors call the "Visa-Mastercard duopoly" in credit card processing. Senator Durbin argues that credit card swipe fees inflate prices consumers pay for groceries and gas, and claims the bill will inject real competition into the credit card network market.

However, the reality may be far more complicated than these promises suggest.

Why Credit Card Rewards Are Actually at Risk

Interchange fees—the fees merchants pay to process credit card transactions—fund the generous rewards programs cardholders enjoy. These fees typically range from 1.5% to 3% of each transaction and provide the revenue that card issuers use to offer sign-up bonuses, points earning rates, and valuable perks.

Economic analysis from Oxford Economics Research found that the Durbin-Marshall bill could cost the U.S. economy $228 billion and 156,000 jobs by eliminating rewards programs supporting travel and tourism nationwide.

When interchange revenue decreases, banks face a fundamental choice: absorb the losses or reduce the benefits they offer cardholders. Historical evidence strongly suggests they'll choose the latter.

The Debit Card Warning: What Already Happened in 2010

The best predictor of what could happen to credit card rewards exists in recent history. The Durbin amendment to the 2010 Dodd-Frank Act reduced swipe fees on debit card purchases, with supporters making the same argument that merchants would save on fees and pass those savings to customers.

The results tell a concerning story for rewards enthusiasts:

A 2017 Federal Reserve report found that banks subject to the Durbin amendment were 35.2% less likely to offer free checking accounts and hiked monthly fees on checking accounts by 17-20% on average, while minimum balance requirements rose by at least 50%.

More directly relevant to points and miles collectors: debit card rewards programs almost entirely disappeared after the amendment passed.

Multiple studies concluded the price impact on consumers appears negligible, with little evidence of any consumer savings, and a 2015 Federal Reserve Bank of Richmond survey found that more than 21% of merchants actually increased their prices after the rule went into effect.

The pattern is clear: merchants kept the savings, consumers lost their rewards, and banks found other ways to recover lost revenue through higher fees.

Recent Legislative Attempts and Current Status

The Credit Card Competition Act has been introduced in multiple sessions of Congress but has consistently failed to generate enough support to pass as a standalone bill. This has led sponsors to attempt attaching it as an amendment to other legislation.

In 2025, supporters attempted to include it as an amendment to a cryptocurrency-related bill called the GENIUS Act, but it was dropped from the final Senate package. At least one Republican senator, Thom Tillis of North Carolina, warned that if the CCCA is attached to the GENIUS Act, he would withdraw his support on the Senate floor.

Despite these setbacks, lawmakers like Senator Dick Durbin have signaled they will keep pushing for it, potentially attaching it to other legislation.

The Impact on Points and Miles Collectors

If the Credit Card Competition Act passes, the consequences for rewards enthusiasts could be severe and immediate:

Sign-Up Bonuses at Risk: The lucrative 60,000-100,000+ point welcome offers that make premium travel cards attractive would likely disappear or be dramatically reduced. Cards like the Chase Sapphire Preferred and Chase Sapphire Reserve, which currently offer substantial bonuses, could see these benefits eliminated entirely. These bonuses are funded directly by interchange revenue that would be cut under the legislation.

Earning Rates Would Decrease: Cards currently offering 3x, 4x, or 5x points in bonus categories would likely see those rates reduced to 1x or 1.5x across the board. Popular cards like the American Express Gold Card, which offers 4x points on dining and groceries, could lose their category bonuses. The economics simply wouldn't support current earning structures with reduced interchange fees.

Premium Benefits May Disappear: Travel credits, airport lounge access, hotel status benefits, and other premium perks cost card issuers money. With reduced revenue from interchange fees, these benefits would become difficult to justify financially. Cards like the Capital One Venture X and The Platinum Card from American Express could see their valuable travel credits and Priority Pass lounge access eliminated.

Transfer Partners Could Be Limited: The valuable ability to transfer Chase Ultimate Rewards points to airline and hotel partners at 1:1 ratios might be eliminated or limited, as maintaining these partnerships and transfer systems requires significant investment. Similarly, understanding Citi ThankYou Points transferability to partners could become irrelevant if these features disappear.

Who Actually Benefits from This Legislation?

Analysis shows that community banks suffered a 30% decrease in their interchange revenue after the Durbin Amendment was adopted, and exempted community banks will face the same situation again if credit card routing mandates become law.

The Electronic Payments Coalition told TPG that the Durbin-Marshall bill lets corporate mega-stores like Walmart, Target, and Home Depot choose the cheapest credit card processing option without considering consumer security or benefits.

The primary beneficiaries would be large retailers with significant bargaining power, not consumers or small businesses.

Additional Concerns: Fraud and Security

A study from Texas A&M University found that enactment of the bill could, based on 2021 card activity, double the amount of fraud to $20 billion over the next decade.

This increased fraud risk stems from potentially routing transactions through less secure, alternative payment networks that may not have the same sophisticated fraud detection systems currently maintained by established networks like Visa and Mastercard.

What Rewards Enthusiasts Should Know

The Credit Card Competition Act represents the most significant legislative threat to credit card rewards programs in over a decade. While the bill has not passed and faces ongoing opposition, its sponsors continue attempting to attach it to must-pass legislation.

A 2022 Government Accountability Office report found that if the original Durbin Amendment had not been implemented, 65% of noninterest checking accounts offered by covered banks would have been free. After the Durbin Amendment went into effect, the Federal Reserve Bank of Richmond found 98% of merchants either raised prices or kept them the same, despite repeated promises from retailers that any savings would be passed on to consumers.

The evidence strongly suggests that if this legislation passes, consumers will lose their rewards with no meaningful benefit in return.

What You Can Do

Points and miles enthusiasts who want to protect their rewards programs should consider reaching out to their senators and representatives to express opposition to the Credit Card Competition Act. The Electronic Payments Coalition has established resources for concerned consumers to contact their legislators.

Additionally, maximizing current rewards opportunities while they remain available makes practical sense given the legislative uncertainty. Focus on:

• Taking advantage of current elevated sign-up bonuses
• Maximizing bonus category spending on existing cards like the Citi Strata Premier or American Express Business Gold
• Using transfer partners while 1:1 ratios remain available
• Building point balances in flexible currencies like Chase Ultimate Rewards, American Express Membership Rewards, and Citi ThankYou Points
• Understanding the best Chase credit cards for 2025 and best Citi credit cards before program structures potentially change

The credit card rewards ecosystem has provided tremendous value to millions of Americans for decades. Whether it survives 2026 may depend on consumers making their voices heard in opposition to legislation that threatens to eliminate these benefits without providing any real consumer protection or price savings in return.

This article contains affiliate links. If you apply through our links, we may earn a commission at no cost to you, which helps us continue sharing points and miles strategies with the community.