Great Lakes Wire

Jonathan C. Kinloch, the Wayne County Commissioner, expressed concerns over the Credit Card Competition Act, stating it would eliminate credit card rewards and increase expenses for Michigan's working families and small businesses.

"Please OPPOSE the Credit Card Competition Act," said C. Kinloch. "At a time of rapidly growing economic uncertainty, this bill threatens to gut credit card rewards. raise costs for working families and small businesses in Wayne County and across Michigan."

The Credit Card Competition Act of 2023 is designed to enhance competition in the credit card processing market by mandating that major credit card-issuing banks provide merchants with a choice of at least two unaffiliated networks for processing transactions. Proponents argue this measure could reduce the dominance of Visa and Mastercard while lowering interchange fees.

According to NerdWallet, opponents of the Act argue that reducing interchange fee revenues might lead credit card issuers to scale back or eliminate rewards programs like cash back and travel points, which are funded by these fees. They assert this could diminish consumer benefits without ensuring lower retail prices.

Critics further contend that the Act could adversely affect small businesses in Michigan by increasing processing costs and reducing access to credit card rewards. A study by the Small Business & Entrepreneurship Council suggests that the proposed mandates might disrupt existing processing networks, resulting in higher fees and reduced service quality. They warn that small businesses, which depend on predictable transaction costs, may experience financial strain as a consequence.

Kinloch serves as the Wayne County Commissioner for District 2, representing parts of Detroit. His background includes public service and community involvement with a focus on economic development and education within the county.