A few days ago, my former colleague and good friend Kurt Bahr offered an editorial in support of the Credit Card Competition Act (CCCA). I’d like to offer a competing argument.
When we served together in the Missouri House, it was my friend Kurt that received the A+ ratings from all the conservative interest groups, not me. I can recall several occasions when Kurt would come over to my desk and ask why I “was off the reservation on this vote?” We had some good laughs about my occasional bouts of free-thinking. But maybe this time, I’m the conservative one here after all.
Why would a conservative interfere with my choice of credit card? I’m free to pick any card of my choosing. I’m perfectly capable of changing card issuers if I have a problem. That’s the free market. Does the nanny-state really need to know what’s in my wallet?
Additionally, I don’t have any problem with interchange fees being charged at the point of sale. I’ve made the economic decision to buy the goods or services. Whether or not the swipe fee is absorbed by the merchant or passed to me, it’s commerce in the purist sense: a willing buyer and a willing seller conducting a transaction.
Don’t forget, this swipe fee supports my bank-the card issuer-and their efforts to reduce my risk of getting hacked. I want my issuer to improve their fraud technology; after all I’ve been hacked myself.
Senator Richard Durbin(D-IL), the bill’s sponsor, argues that VISA and MasterCard are a duopoly. They are major players, no doubt. But it’s interesting to me that Illinois based Discover Card is merging with Capital One. If it’s more competition that Senator Durbin wants, why not cheer on the merger and let the competition begin! And don’t forget American Express…
And finally, it’s worth mentioning that Kurt and I both enjoy the benefits of being responsible credit card users. Our travel rewards, mileage programs, and cash back features will go away if the CCCA becomes law. Just another example of a law that sounds popular, hurting everyday citizens who were just minding their own business.
I wish my old friend Kurt well but ask that you urge Senators Schmitt and Hawley to oppose the CCCA.
Former Missouri State Representative, 2009-2014
