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  • The Credit Card Competition Act of 2022 has been added to the National Defense Authorization Act (NDAA).
  • This new amendment aims to increase competition between credit card issuers to benefit consumers.
  • However, this could backfire on those who collect credit card rewards.
  • Read Insider’s guide to the best rewards credit cards.

Everyone loves a good credit card reward. This is true whether you enjoy earning cash back or flexible point currencies. The Credit Card Competition Act of 2022, initially introduced as a standalone piece of legislation, has now been added to the National Defense Authorization Act (NDAA) — and it may impact the rewards you’re earning. This amendment, which would affect both Visa and Mastercard, will work to increase competition between credit card issuers.

Currently, Visa and Mastercard account for nearly 83% of the credit card market, leading to a massive duopoly with little competition. This new amendment would require banks to offer at least one other payment network — aside from Visa and Mastercard — to its customers. Theoretically, this opens the door to other payment providers, shaking up the duopoly that these issuers maintain. 

Competition in the marketplace is always a good thing, right? Maybe. While the Credit Card Competition Act of 2022 has the potential to force merchants to accept more credit cards, it may also backfire on those who collect credit card rewards. 

Insider’s Featured Cash Back Credit Cards

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Earn unlimited 2% cash rewards on purchases.

$200 cash rewards bonus after spending $1,000 in purchases in the first 3 months from account opening

Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

$200 cash back after spending $1,500 on purchases in the first 6 months of account opening

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. 5% cash back on travel purchased through Chase Ultimate Rewards®. 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and unlimited 1% cash back on all other purchases.

$200 after spending $500 on purchases in the first three months from account opening

We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.

Credit Card Competition Act added to NDAA

Chase Sapphire Preferred® Card


Intro offer

60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening


Rewards

Earn 5x points on all travel purchased through Chase Ultimate Rewards. Earn 3x points on dining, including eligible delivery services, takeout, and dining out. Earn 3x points on select streaming services. Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs). Earn 2x points on other travel. Earn 1x point per dollar on everything else.

Chase Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card


Intro offer

60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening


Rewards

Earn 5x points on all travel purchased through Chase Ultimate Rewards. Earn 3x points on dining, including eligible delivery services, takeout, and dining out. Earn 3x points on select streaming services. Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs). Earn 2x points on other travel. Earn 1x point per dollar on everything else.


Rewards

Earn 5x points on all travel purchased through Chase Ultimate Rewards. Earn 3x points on dining, including eligible delivery services, takeout, and dining out. Earn 3x points on select streaming services. Earn 3x points on online grocery purchases (excluding Target, Walmart, and wholesale clubs). Earn 2x points on other travel. Earn 1x point per dollar on everything else.


Intro offer

60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening


Recommended Credit

Good to Excellent

Recommended credit score. Note that credit card lenders may use many different variations of credit score models when considering your application.

Show more


Regular APR

18.24% – 25.24% Variable

Editor’s Rating

4.8/5

Our editor’s ratings analyze fees, bonuses, rewards, and benefits to highlight the simplest and most valuable credit cards available.

Show more

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Swipe fees and network fees are paid by merchants for the ability to accept different cards. This means, for example, that if you take out your Visa card to pay for a purchase at the grocery store, the store will then pay a fee to accept your card and an additional fee to use the network that accepts your card. As a customer, you’ll see these fees reflected in higher prices for goods and services. 

Introducing new payment networks paves the way for more competition. To stay relevant, networks such as Visa and Mastercard will need to take action. This can mean lowering fees, among other tactics. However, lower fees lead to less profit, and in order to make up for some of that loss, card issuers may slash credit card rewards. This can leave both your cash back and travel rewards at risk. 

Another amendment added to the NDAA includes a report on the fees that eligible veterans are being charged for using their cards at commissaries. For those who are unfamiliar with the process, certain veterans, such as Purple Heart holders and those with service-connected disabilities, are able to access on-base facilities that have historically been limited to active-duty service members. 

However, commissaries in particular are passing along swipe fees to these veterans, charging them an additional percentage when they use either a credit or debit card to pay for their groceries. Note that these fees are charged specifically to veterans; active-duty members using their credit cards do not suffer the same costs. So although commissary shopping is tax-free, these swipe fees add an unnecessary financial burden to these veterans. 

That’s the gist of the amendments filed by Senate Majority Whip Dick Durbin and Senator Roger Marshall, who contend that these fees, which are charged by card issuers, are excessive and without enough regulation. 

Do these two amendments make sense together? Barely. They’re linked by swipe fees, which civilians and veterans alike are forced to shoulder. 

It’s the hope of both Durbin and Marshall that introducing more competition into the payment network market will lower swipe fees. This, in turn, may decrease the fees veterans are being charged when shopping at the commissary. Will that happen? We’ll see if — and when — the Credit Card Competition Act of 2022 is passed. 



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