Why debit cards don't offer rewards

The Credit Card Competition Act of 2022 is a piece of legislation making its way through congress and has the potential to end the credit card game as we know it. The legislation seeks to increase competition in the credit card transaction processing market which is currently dominated by Visa and Mastercard. Senators Dick Durbin and Roger Marshall are the two who originally proposed the legislation. The goal of the legislation would also lower the transaction fees charged by the processing companies to merchants which could in turn force banks to cut credit card reward programs because they would be earning significantly less revenue from transactions. The Durbin Amendment which went into effect in 2011 set fixed transaction fees on debit cards which ended debit card cash back reward programs and forced banks to raise rates and fees on other products to offset the lost revenue. Now, the federal government is going after credit card fees as well.

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