tmiw

If the plaintiffs' attorneys are to be believed, the settlement would allow something like 96% of transactions to be surcharged (up from less than 20% before). Depending on how much latent demand there is and how the final rules are structured, that would likely be enough to get a significant number more to start doing so--especially since the settlement doesn't lower interchange that much.

SPN Lifer

Discussion in this thread:

https://www.flyertalk.com/forum/cred...ettlement.html

cbn42

Even if only 20% of transactions can currently be surcharged, all transactions can have a cash discount and it is still relatively rare, so I don't think there is much latent demand. Perhaps there will be more surcharging at the types of merchants that already do it, but I just can't imagine national retailers starting this practice.

moondog

Moderator1 Might merging these threads be appropriate? I think there might a few other mirror discussions floating around too.

phltraveler

The mods are free to do what they want, but Durbin's Credit Card Competition Act would go much further in forcing alternate networks, not just paltry (7 basis points over 5 years overall average, and 4 basis points for three years on published interchange schedules) temporary cuts consented to by the card networks.

While the topics of reduced interchange under Durbin and impact on rewards if it passes are common concerns with the Visa/Mastercard proposed settlement, the mechanics and degree of how each (if they come to pass - again, CCCA hasn't passed with Durbin, and the proposed settlement agreement for Visa/MC with retailers is still proposed, not agreed or approved by a judge) are different enough where, IMO, if we try to consolidate all of these threads it'll just be a mess. The CCCA is distinct in that it effectively seeks to remove Visa/MC entirely from transactions in favor of fostering competition with secondary networks having to be offered on Visa/MC cards from issuers with >$100B assets.

There might be some greater argument into consolidating the Visa/MC settlement thread into the overall 2024 onwards credit card surcharging thread. The Visa/MC settlement goes beyond surcharging and interchange adjustments, but a lot of the discussion in those threads is likely more common.

moondog

Got you. My current policy is try to only maintain one subscription to general topics that I'm curious but not super curious about (e.g all things Boeing), about I still appreciate and respect the importance of nuance (i.e. benefits of giving distinct sub topics their own homes).

G2244

Looks like there is now an official DOT and CFPB hearing to take place on May 9th that is focused on both the FF programs themselves as well as related credit cards:

TPG Article

hiker67

"Delta Air Lines, for instance, has said that nearly 1% of the U.S. GDP is spent on its cobranded credit cards."

Sandeep1

This actually sounds good. Hold their feet to the fire. The lack of notice before devaluations is the one thing that really bothers me.

phltraveler

I would note that the focus here seems to be moreso on that commitments of sign up bonuses and earn rates are met, as well as if the marketing is misleading (50,000 miles, enough for two roundtrip tickets [if you can find a 12.5k per direction super saver rate) and the business practices towards consumers (devaluations with little warning, restrictions on award availability etc)... by the DOT and CFPB. None of the panelists are from the largest US issuing banks or the largest US airlines.

Durbin wanted open testimony on "how the sausage is made" in terms of how much airlines pay for these deals, how much banks pay for miles, etc... basically with Durbin as the chair of the Senate Judiciary Committee, "inviting" big airline CEOs (Delta, American, United) to testify. They've obviously not entertained that invitation thus far.

So these two on their face seem to be about very different conversations.

FlyerAVL

• Scott DeAngelo, executive vice president and chief marketing officer, Allegiant Air
• Morgan Harper, director of policy and advocacy, American Economic Liberties Project
• Andrew Grimm, president and CEO, Apple Federal Credit Union
• Sara Nelson, international president, Association of Flight Attendants
• Lukas Johnson, chief commercial officer, Breeze Airways
• Erin Witte, director of consumer protection, Consumer Federation of America
• Robert Patrick Cooper, senior vice president and general counsel, OneUnited Bank

Its a literal who are these people and why would they matter when no one from Delta, United, AA, JPM/Chase, BoA, etc are there?
Association of Flight Attendants, Consumer Federation. and maybe the American Economic Liberties Project people are all fine but those others are suspect.