Instead of promoting competition, the Credit Card Competition Act of 2022 expands the power of the Federal Reserve to distort the supply and demand of the credit card market to a point where consumers will see rewards programs largely disappear. This government intervention will lead to fewer card options, limit choices for consumers, and reduce competition in the market altogether.
Sens. Dick Durbin (D-Ill.) and Roger Marshall’s (R-Kan.) deceptively named bill expands the regulatory authority of the Fed to intervene in the credit card market. The bill directs the Fed to require banks and credit unions to issue credit cards that utilize at least two unaffiliated payment networks. One stipulation is that the two network options may not both be Visa and Mastercard.
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