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Louisiana Legislature Unanimously Opposes Government Credit Card Mandates – Louisiana’s Senators Should Too

If every member of the Louisiana state legislature agrees on something, you know it’s a clear-cut issue. Earlier this year both chambers of the state legislature unanimously approved a resolution opposing new credit card mandates being proposed in Washington, DC. These mandates – being pushed by the largest corporate mega-stores – would hurt Louisiana businesses and financial institutions, harm Louisiana families by jeopardizing credit card security and rewards like cashback, and serve a blow to our state’s tourism economy due to the loss of travel rewards.


The legislature’s resolution states the current U.S. payment system is highly competitive and those D.C. mandates are simply a form of government favoritism. You see, the bill before Congress would allow businesses – not you – to pick how your credit card is processed. Instead of using the safe, secure, tested network you know, corporate mega-stores would be able to run credit cards on untested, cheaper networks. That means more money for them and less security for you.


It is clear to see why the Louisiana legislature sent a clear, unified message of opposition to Washington.

Extensive research shows these new government mandates would hurt Louisiana’s financial system. Currently, banks and credit unions use the processing costs merchants pay during credit card transactions to support their work in local communities, stay a step ahead of hackers and fund rewards programs. And it’s not just large institutions that will be affected. Louisiana’s community banks and 151 credit unions use the revenue from card processing to stay ahead of hackers looking to steal your data, make loans, issue credit cards, update their technology and more.


Credit card rewards programs, including travel and cash back rewards, are also at risk from these new mandates.


Louisiana’s tourism department says in 2022 alone there were more than 40 million domestic and international visitors to the state. Jazz Fest, Mardi Gras, football, fishing and outdoor activities, our world-class cuisine, and more draw people to the state, thousands of whom are using saved up miles to fly here or hotel points to book the best spot they can. This tourism supports jobs in a variety of places, from our museums to zoos to restaurants. Research shows that people using just airline credit card rewards helped support more than 2,000 jobs in the state and $270 million in economic activity. All of this is put at risk if those D.C. mandates pass into law. (Airlines4America, 2023)


Credit card rewards are also valued by small businesses. Rather than having to carry cash or deal with the risk of bounced checks, businesses are increasingly relying on credit cards. It’s safer and guarantees payment for services rendered. Plus, when purchasing supplies for the business itself, owners can earn credit card points. Many choose to invest those points back into the business.


Families also value credit card points. Some pick cashback cards. In fact, cashback cards are the most popular choice of rewards for people who are low or middle income. If you study when these rewards are redeemed, you see spikes around November and December, as well as during the back-to-school season. This likely reflects the need to buy new clothes and supplies for the fall, as well as presents during the holidays. Especially in today’s economic climate, cashback rewards are a clear lifeline for the working class.

The resolution endorsed by the state legislature opposes the bill before Congress both on principle and because of its catastrophic effects. It’s just bad policy.


The bill’s sponsors in Washington, D.C., are Sen. Dick Durbin of Illinois and Sen. Roger Marshall of Kansas, and they’ve tried everything in their power to move this forward. People are noticing, though, and it will take many states’ voices to stop this bill. I hope Louisiana’s leaders in Congress take note of the state legislature’s action and put the interest of Louisianans over corporate mega-stores.  

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