From Yahoo Finance: 2025-06-02 12:37:00

Major airlines are opposing legislation that would reduce fees charged by Visa and Mastercard, potentially impacting rewards credit cards. They warn this could harm air travel and tourism. The legislation aims to save consumers and merchants $15 billion annually in fees. Airlines fear it could eliminate rewards programs, similar to what happened with debit cards in 2010.

The proposed legislation, sponsored by Senators Durbin and Marshall, could be attached to a cryptocurrency bill. Over 31 million Americans hold airline travel rewards cards, with 57% of frequent flier miles generated through airline credit card use. The Biden administration is investigating carriers to ensure consumer protection and fair practices.

Airlines rely heavily on rewards programs for revenue, especially during the pandemic. Loyalty programs of Delta, United, and American are valued at over $20 billion each. The outcome of the legislation could have significant implications for the industry.



Read more at Yahoo Finance: US airlines oppose credit card fee crackdown they say could imperil free flight offers