Nearly Two-Thirds of Consumers Oppose Regulation of Credit Card Reward Programs

While regulators are looking to increase scrutiny on credit card reward programs, the strong majority of US consumers are satisfied with their cards and don’t want government interference in their rewards.

A Morning Consult survey commissioned by the American Bankers Association found that 63% of US consumers reported they would be disappointed if government regulations led to the loss of their credit card rewards programs.

This disappointment comes as 94% of consumers said they value the convenience of using credit cards, 80% have at least one credit card with rewards, and 91% say they value those rewards programs.

Consumers’ resistance to government interference comes amid the Consumer Financial Protection Bureau’s acknowledgement that as credit card rewards programs have expanded, they’ve also become more complex.

Operators often reserve the right to unilaterally change these programs, which has prompted at least one state to step in and offer consumers greater protections against such changes.

Rob Nichols, president and CEO of ABA, said: “This new survey data makes one thing crystal clear — consumers greatly value their credit cards and the rewards programs that come with them and don’t support heavy-handed government actions that could take them away.”

“Legislative initiatives to expand the power of the federal government to intervene in the U.S. credit card market, such as the Durbin-Marshall bill introduced last Congress, would only reduce consumer choice while increasing costs and fraud risks. Congress should continue to reject this flawed legislation and listen to consumers.”