Show-Me State Times

Matthew Goldman, publisher of CardsFTW, has expressed opposition to the Credit Card Competition Act. He argues that "mass-affluent consumers will strongly resist any loss of rewards." This statement was made in an article by Open Banker.

"I am hopeful Congress won't pass the Credit Card Competition Act because the mass-affluent voters of this country will allow you to take their rewards from their cold, dead hands," said Goldman.

According to Congress.gov, the Durbin-Marshall Credit Card Competition Act was introduced in the U.S. Senate in 2023 with the aim of promoting competition in the electronic credit transaction market. The bill proposes that covered credit card issuers should enable at least two unaffiliated networks for processing transactions, with the goal of reducing merchant fees. The proposal has ignited debate regarding its potential impact on credit rewards programs and consumer choice.

Oxford Economics projects that if the bill is passed, it could lead to a reduction in U.S. GDP by $227 billion and result in 156,000 job losses over a three-year period. The study suggests that decreased rewards incentives would likely reduce spending in sectors such as travel and tourism, potentially causing significant downturns in key destination markets.

The Independent Women’s Forum has raised concerns about the implications for small businesses, particularly in states like Missouri. They say these businesses could face increased exposure to fraud and higher compliance costs under the proposed legislation. The requirement for accepting less-established networks might lead to weaker security protocols and fewer protections against fraudulent transactions, disproportionately affecting smaller enterprises with limited technical infrastructure.

Goldman is also known as the founder of Totavi, LLC and publisher of CardsFTW, a newsletter focused on credit and payment cards. He has started five companies and participated in exits totaling over $1.6 billion. His work has been featured in major publications including The New York Times and Wall Street Journal.