Hawkeye Reporter

David Williams, President of the Taxpayers Protection Alliance, said that eliminating cash back and travel rewards under the Credit Card Competition Act would negatively impact hardworking Americans. This statement was made on X.

"Taking away cash back and travel awards does not help hard working Americans," said Williams. "We did a grassroots campaign last year and found that hard working Americans do not like the Credit Card Competition Act."

According to congress.gov, the Credit Card Competition Act of 2022 (S.4674) was introduced by Senators Dick Durbin and Roger Marshall. The legislation requires banks with over $100 billion in assets to enable transaction processing on at least two unaffiliated networks. It targets exclusive arrangements between major banks and card networks like Visa and Mastercard, aiming to foster competition and reduce costs for merchants. The bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs.

David Williams, President of Taxpayers Protection Alliance | X

The Guardian reported that the Durbin Amendment did not deliver promised savings to consumers but instead led to unintended costs. While merchant fees were capped, banks eliminated rewards programs and introduced new fees to recoup lost revenue, disproportionately affecting lower-income Americans. Critics argue that the legislation benefitted large retailers at the expense of consumers.

According to a report by the Federal Reserve, small issuers, including credit unions in states like Iowa, could face higher costs and lower interchange revenue under proposed routing mandates. Public comments included in the report warned that credit unions serving rural and underserved areas might reduce services. The Federal Reserve noted that these institutions often depend on interchange fees to maintain operations and offer affordable financial products.

Williams is recognized as an expert in identifying government waste during his 30 years in Washington, DC. He has contributed to refining criteria for identifying and eliminating earmarks and has appeared on outlets such as ABC World News Tonight, The Jim Bohannon Show, and The New York Times.