Credit Card Rewards Assist Gasoline U.S. Journey, Tourism and the American Economic system

EPC’s Richard Hunt: “With millions of Americans using credit card rewards to travel and generate billions of dollars in economic activity, protecting rewards is tantamount to protecting American jobs, small businesses and local economies across the country.”

WASHINGTON, D.C.—President Donald Trump right now met with main U.S. journey executives to debate the necessary function journey and tourism play within the American economic system. The assembly comes on the heels of a robust summer season journey season, with U.S. journey spending rising 6.2 % year-over-year in June to greater than $122 billion.

Credit card rewards are an necessary driver of this financial exercise.

In 2024 alone, greater than 15 million Americans booked home air journey utilizing factors earned by means of airline bank cards, in accordance with Airlines for America. Those journeys generated roughly $24 billion in financial exercise nationwide.

The financial influence reaches nearly each nook of the nation. And journey is just a part of the worth Americans obtain from bank card rewards.

Americans redeemed $60.9 billion in bank card rewards in 2024, in accordance with the latest analysis from the Electronic Payments Coalition, together with $27.8 billion in money again. Those rewards assist households pay for all the pieces from holidays and journeys to see household to groceries, gasoline, faculty provides and different on a regular basis bills.

“Credit card rewards are economic engines,” stated Richard Hunt, Executive Chairman of the Electronic Payments Coalition. “They assist households afford journeys, and people journeys put cash within the pockets of native eating places, lodges and small companies.

“With millions of Americans using credit card rewards to travel and generate billions of dollars in economic activity, protecting rewards is tantamount to protecting American jobs, small businesses and local economies across the country.”

The advantages of rewards additionally prolong throughout earnings ranges. Since 2020, rewards card possession has grown quickest amongst low-to-moderate-income customers, and right now greater than two-thirds of LMI cardholders have a rewards card. Research additionally exhibits that cardholders throughout earnings teams earn rewards at nearly equal charges, whereas lower-income households place an excellent higher emphasis on cash-back rewards to assist handle on a regular basis bills.

That is why defending America’s present bank card system issues not solely to customers, but additionally to the broader U.S. economic system.

The Durbin-Marshall Credit Card Mandates would ship a double hit to American journey and tourism. By threatening the economics that make sturdy bank card rewards attainable, the laws dangers making journey costlier for tens of millions of Americans whereas concurrently lowering spending in tourism-dependent communities.

At a time when policymakers and business leaders are targeted on strengthening America’s economic system and addressing affordability, Congress needs to be in search of methods to encourage Americans to journey and spend as a substitute of threatening one of many instruments tens of millions of households already use to make that journey attainable with the Durbin-Marshall Credit Card Mandates.