Op Ed: The Credit Card Competition Act Threatens Montana's Tourism Industry

We call Montana “The Last Best Place” for good reason. Millions of visitors come to share in our state’s breathtaking landscapes and vibrant communities each year, supporting nearly 50,000 Montana jobs and bringing at least $5 billion to our state annually, according to a study by the University of Montana. This revenue fueled our post-pandemic recovery, providing a lifeline to our hotels, local restaurants, and countless small businesses.

I know how crucial these visitors are to our state’s economic health. Many tourists can afford trips to Big Sky Country thanks to credit card rewards points. About one-third of Americans have travel rewards credit cards, allowing them to subsidize flights and hotel stays with earned points.

Unfortunately, Congress is considering legislation that could jeopardize these rewards programs. That would have devastating ripple effects on Montana’s tourism sector and by extension, our whole economy. The Credit Card Competition Act (CCCA) mimics a 2010 piece of legislation called the Durbin Amendment, named for its sponsor, Senator Dick Durbin of Illinois. This measure imposed routing mandates on debit cards, forcing banks to open debit transaction processing to less secure payment networks.

When banks and credit unions saw their interchange revenue drop because of the Durbin Amendment, they tried to make up for it by slashing services like no-fee debit cards and debit card rewards, and free checking accounts. The real winners of the Durbin Amendment were mega retailers, who were able to rake in an additional $106 billion, and counting. However, they did not lower costs for consumers, according to a study by the Federal Reserve Bank of Richmond.

Unfortunately, Congress is still considering doubling down on this policy mistake by expanding routing mandates to credit card transactions with the CCCA.

This isn’t speculation – we can look to other countries that have implemented similar policies. After Australia enacted this type of regulation on credit cards, rewards point values dropped by nearly 25 percent and no-fee credit cards all but disappeared.

If the CCCA passes, the nation’s largest retailers – Home Depot, Walmart, Amazon, and Costco – stand to gain over $1 billion, while consumers face the loss of no-fee credit cards and valuable travel rewards. Montana’s economy can’t afford these losses. We need policies that encourage visitors to explore our national parks and charming small towns, not make travel more difficult.

I urge our Congressional delegation to reject this handout to big box stores and stand up for Montana’s vital tourism sector. Our local businesses and hardworking families are counting on it.

Senator Mark Noland is the vice chairman of the Senate Business, Labor, and Economic Affairs committee. He represents Senate District 5 in the Flathead.