Julian Morris Quoted in CardRates.com on the Credit Card Competition Act
An article in CardRates.com details recent legislative developments regarding the Credit Card Competition Act (CCCA), which failed to advance as an amendment to a housing affordability package. The piece notes concerns regarding the legislation, referencing ICLE Senior Scholar Julian Morris. Morris observes that the CCCA’s routing mandates could lead card-issuing banks to increase consumer fees or reduce reward programs because of reduced interchange revenue. Read the full piece here.
Julian Morris, Senior Scholar at the International Center for Law & Economics, recently warned in a web post that lower revenue from interchange could compel banks that issue cards to increase other fees or reduce cardholder benefits such as rewards.
“By diverting traffic away from the major cards’ networks, the routing mandate would also reduce the effectiveness of the cards’ security features, resulting in an increase in preventable fraudulent transactions,” Morris explained.