Consumers Push Back Against Credit Card Overhaul

New data shows Americans value rewards—and reject the Durbin-Marshall bill’s threat to them

As Washington resumes its push to shake up the credit card market, new data makes clear that consumers aren’t buying it. A majority of Americans are satisfied with their credit cards—and overwhelmingly oppose government efforts to meddle with the rewards and convenience those cards provide.

At the heart of the fight is the Credit Card Competition Act, better known as the Durbin-Marshall bill. Reintroduced in Congress with the backing of large retail lobbies like Walmart and Target, the bill proposes to overhaul how credit card transactions are routed and processed. Proponents claim it will create competition among payment networks and lower costs for consumers. But a growing number of economists, banks, and—importantly—consumers argue the opposite: that it’s a regulatory solution in search of a problem.

According to a national survey conducted in late March by Morning Consult on behalf of the American Bankers Association, 94% of U.S. adults said they value the convenience of using credit cards. Eight in ten (80%) said they own at least one credit card that offers rewards like airline miles or cash back. And a staggering 91% reported that they value those rewards.

Nearly two-thirds (63%) said they would be disappointed to lose their rewards programs if government regulation were to disrupt them—a very real possibility if the Durbin-Marshall bill becomes law. Those sentiments aren’t just noise; they represent a growing backlash to legislative efforts that consumers see as threats to something they use and rely on every day.

“Consumers greatly value their credit cards and the rewards programs that come with them,” said Rob Nichols, president and CEO of the ABA. “They don’t support heavy-handed government actions that could take them away.”

The Durbin-Marshall bill would require banks to allow at least two unaffiliated networks to process credit card transactions—similar to the debit card changes passed under the 2010 Dodd-Frank law. The hope is that competition will drive down so-called “interchange fees” paid by merchants. But there’s little evidence that consumers would benefit. In fact, the Richmond Fed found that after similar changes to debit cards, 98% of merchants either raised prices or kept them the same.

Consumers appear to understand what’s at stake. The Morning Consult poll showed 74% of Americans agree that retailers already receive significant benefits from accepting credit cards—including fast, secure payments, and fraud protection. And they believe those retailers should pay for the privilege. By a 5-to-1 margin (66% to 13%), consumers say merchants—not cardholders—should bear the cost of processing payments.

That sentiment is backed up by behavior. Two-thirds of consumers said they’re less likely to shop at a business that adds a surcharge for using a credit card. And nearly 70% said they would oppose lowering fees for retailers if it meant higher fees for banking services like checking accounts.

In other words, Americans understand the trade-offs. The current system gives them convenience, security, and rewards. Disrupting that system in the name of helping large retailers comes with real risks—ones they’re unwilling to accept.

For Congress, the message is loud and clear: Consumers value what they have and don’t want Washington to break it. Legislators should think twice before siding with big box retailers at the expense of the people they represent. The business case against the Credit Card Competition Act is strong—but the political case may be even stronger.