Major airlines announced their opposition to new legislation aimed at reducing fees charged by Visa and Mastercard on transactions. They argue that such a bill could force them to discontinue offering rewards credit cards, which provide consumers with frequent flyer miles.
This opposition highlights the complex interplay between interchange fees, loyalty programs, and consumer benefits within the payments ecosystem. Airlines contend that the proposed fee reductions could undermine the economic viability of these popular rewards programs.
The stance taken by airlines and planemakers adds another dimension to the ongoing debate surrounding credit card fees and regulatory intervention. The potential impact on consumer rewards programs could influence public and political sentiment regarding the proposed legislation, creating uncertainty for payment networks like Mastercard.
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