Credit Card Competition Act 2026: Is Congress About to Kill Your Points?

If you’ve been blissfully collecting points and miles without paying attention to Capitol Hill, it’s time to wake up. Legislation that could fundamentally change credit card rewards just got reintroduced in Congress, and the founder of The Points Guy is calling it “un-American.”

Let me break down what’s happening, why it matters for your points strategy, and what you can do about it.

What Just Happened?

The Credit Card Competition Act (CCCA) has been reintroduced in Congress. Meanwhile, a federal judge just upheld Illinois’s Interchange Fee Prohibition Act. Together, these represent the biggest legislative threat to credit card rewards in decades.

Here’s the TL;DR:

Credit Card Competition Act: Forces card issuers to put two unaffiliated payment networks on every credit card, letting merchants choose the cheaper one
Illinois Interchange Fee Prohibition Act: Bans swipe fees on taxes and tips (other states are considering similar laws)
The bottom line: Less interchange fee revenue = potentially fewer rewards for you

Why This Threatens Your Points

To understand the threat, you need to understand where your points actually come from.

How Credit Card Rewards Really Work

When you swipe your Chase Sapphire Reserve for a $100 dinner, here’s what happens:

The restaurant pays about 2-3.5% in interchange fees (~$3)
That fee gets split between Visa/Mastercard, Chase, and the rewards program
Chase gives you 3x points (worth ~$0.05 each, or $1.50) from their cut
The airline or hotel partner eventually gets paid when you redeem

The math works because interchange fees fund the rewards. Period.

What Changes Under the CCCA

If the Credit Card Competition Act passes:

Every credit card must have two payment networks (e.g., Visa + a smaller network)
Merchants can route transactions through whichever network charges less
Smaller networks typically charge 1% or less in fees
Less fee revenue = less money to fund your rewards

Banks won’t take the hit—you will. They’ll either:

Cut earning rates (3x becomes 2x or 1.5x)
Increase annual fees (CSR could go even higher than $550)
Devalue redemptions (points worth less when you use them)
Eliminate perks (bye bye Priority Pass, lounge access, travel credits)

Brian Kelly’s “Existential Crisis” Warning

The Points Guy founder Brian Kelly isn’t mincing words. In an interview with Fortune this week, he said:

“There is an existential crisis happening around the rewards and credit card space. I don’t think enough people realize the ramifications of these laws.”

Kelly also called the legislation “un-American”:

“We’re going to allow a retailer to decide how a customer pays for a purchase with their own money? If retailers want people to use their debit card, then they should incentivize it.”

He’s right. This isn’t about protecting consumers—it’s about shifting costs from merchants to cardholders.

The Numbers Are Staggering

Let’s put this in perspective:

Americans will issue or redeem $26 billion in points this year
Delta alone made $8.2 billion from its Amex partnership in 2025 (up 11%)
There are hundreds of billions in unredeemed points sitting in accounts

That $8.2 billion from Delta? It helps fund SkyMiles, award seat availability, and the premium cabin experience. Cut that revenue stream and watch what happens to your redemption options.

The Illinois Law: Death by a Thousand Cuts

Even if the federal CCCA fails, state laws are chipping away at interchange fees. Illinois now bans swipe fees on taxes and tips, which means:

If you tip $20 on a credit card, no interchange fee on that portion
Restaurants and bars lose millions in processing fees they’d otherwise pay
Banks lose revenue they’d otherwise use for rewards
Other states are watching—expect copycat legislation

This “death by a thousand cuts” approach could accomplish what federal legislation can’t.

What Could Actually Happen to Rewards?

Let me paint a realistic picture based on historical precedent:

The Durbin Amendment Precedent

In 2010, the Durbin Amendment capped debit card interchange fees. The result?

Banks eliminated debit card rewards programs almost overnight
Free checking accounts became rare
Monthly fees appeared where they didn’t exist

Credit card rewards could follow the same pattern.

Best-Case Scenario

The CCCA doesn’t pass, or passes with exemptions for premium cards:

Status quo mostly maintained
Some networks might slightly reduce rewards on lower-tier cards
Premium cards (CSR, Platinum, etc.) protected

Worst-Case Scenario

Full CCCA implementation with no exemptions:

Earning rates slashed 30-50% across the board
Annual fees increase to maintain some rewards
Sign-up bonuses shrink from 60-100K to 30-40K
Transfer bonuses become rare
Airline/hotel co-brand cards become nearly worthless

Most Likely Scenario

Something in between:

Entry-level cards lose most rewards
Premium cards survive but become more expensive
Travel cards shift to non-points perks (lounges, credits, status)
Business cards may be exempt (they often are from regulation)

What You Should Do Right Now

I’m not saying panic—but I am saying prepare.

1. Earn Points Aggressively Now

If there was ever a time to hit sign-up bonuses and maximize earning, it’s now. Get those points while the getting is good:

Apply for cards you’ve been considering (following 5/24 rules)
Stack bonuses during transfer promos (like the current Chase 40% Virgin Atlantic bonus)
Use shopping portals for extra earning (guide here)

2. Don’t Hoard Points Forever

Points devaluations happen constantly even without legislation. The threat of regulatory changes is another reason to:

Book aspirational trips now rather than “someday”
Transfer points when bonuses appear
Use points for high-value redemptions while you can

Check our points valuation guide to make sure you’re getting good value.

3. Diversify Your Points Portfolio

Don’t put all your eggs in one basket:

Multiple transferable currencies (Chase, Amex, Capital One, Bilt)
Airline/hotel direct earning in case transfer values tank
Cash back as backup on some cards

4. Consider Business Cards

Business cards have historically been exempt from consumer regulations. If you have a legitimate business (even a side hustle counts):

Best business credit cards
Ink cards for Chase points
Amex Business Gold for dining/advertising

5. Make Your Voice Heard

This isn’t just about complaining online. Contact your representatives:

Call your senators and express concern about the CCCA
Explain the real impact: You’d lose valuable benefits you’ve earned
Note the job impact: The travel industry employs millions

The legislation is positioned as “pro-consumer” but actually shifts costs to cardholders while merchants pocket the savings.

The Counterargument (And Why It’s Flawed)

To be fair, here’s the case FOR these laws:

Interchange fees are among the highest in the world
Small businesses pay billions in processing fees
Those costs get passed to all consumers (even non-card users)
Competition could lower prices

Here’s why that logic fails for rewards cardholders:

Merchants won’t lower prices—they’ll pocket the savings
Debit card rewards died after Durbin—no consumer benefit materialized
Low-income consumers actually benefit from rewards cards (cash back, fraud protection)
The “cross-subsidy” argument ignores that card users already pay annual fees

Timeline and What to Watch

The CCCA has been introduced before and failed. But this time feels different:

Bipartisan support (rare in today’s Congress)
Major merchant lobbying (Walmart, Target backing it)
State-level momentum (Illinois law could embolden others)

Key dates to watch:

Committee hearings: Likely in Q2 2026
Floor votes: If it advances, possibly by year-end
Implementation: If passed, 12-18 months before effects

My Take

Look, I’ve built my entire travel life around points and miles. I haven’t paid for a flight or hotel in years because I learned to maximize rewards. The thought of that ecosystem collapsing is genuinely concerning.

But here’s my honest assessment:

The full CCCA probably won’t pass in its current form. Banks and card networks have enormous lobbying power. Premium cards will likely get exemptions even if something passes.

However, the trajectory is concerning. Between federal attempts and state-level laws, rewards will likely face some erosion over the next 3-5 years.

The smart move: Earn aggressively now, redeem thoughtfully, and don’t let points sit unused for years waiting for the “perfect” redemption that may never come.

Key Takeaways

Here’s what you need to remember:

The Credit Card Competition Act could slash rewards by letting merchants choose cheaper payment networks
Illinois’s law banning fees on taxes/tips is a template other states may follow
Brian Kelly calls it “an existential crisis” for rewards—and he’s not exaggerating
Your action items: Earn points now, redeem regularly, diversify currencies, consider business cards
Timeline: Nothing immediate, but the next 2-3 years could bring significant changes

The points game has evolved constantly since I started. Devaluations come, sweet spots disappear, new cards emerge. This legislation is a bigger threat than usual, but travel hackers adapt.

Stay informed, stay flexible, and keep earning while you can.

What do you think about the Credit Card Competition Act? Are you changing your points strategy? Drop a comment below.