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by MICAH REA
Sen. Dick Durbin (D-IL) plans to reintroduce the Credit Card Competition Act, which failed in the previous Congress. Though proponents of the bill claim it would create more competition in the credit card market by requiring major banks to offer multiple network options for processing transactions, the legislation would severely impact our economy, especially South Carolina airports, by undermining airline loyalty rewards programs that are vital to both travelers and the aviation industry.
As a frequent flyer for work and leisure, I rely heavily on airline-co-branded credit cards for the miles and perks that make travel more affordable and efficient. These programs aren’t just about free flights — they provide benefits like lounge access, seat upgrades, priority boarding, and free checked bags. They also help offset rising airfare costs. However, legislation like the Credit Card Competition Act threatens to upend this system.
By requiring large banks to allow multiple processing networks, they would lose the necessary funding from interchange fees to fund these rewards programs. Major airlines warn this could significantly diminish or even eliminate travel rewards. Southwest Airlines stated that the bill “would undermine, if not completely end, credit card rewards programs that millions of Americans rely on for their vacations or personal travel needs.”
For South Carolina airports, the consequences could be severe. If fewer travelers book flights due to weaker rewards programs, airports could see passenger traffic and revenue decline. This could lead to reduced flight options and higher ticket prices, making travel more expensive and less convenient—especially for frequent flyers who depend on these routes.
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South Carolina airport leaders are also raising the alarm. In a letter to Senators Lindsey Graham and Tim Scott, the directors of Charleston, Columbia, Greenville-Spartanburg, and Myrtle Beach airports warned that the Credit Card Competition Act “would have a devastating impact on air service to our communities.” They stressed that the bill could lead to “higher costs for consumers and significantly diminish airline competition and connectivity.”
Their concerns reinforce what frequent flyers already fear—fewer rewards could mean fewer flights and fewer choices for South Carolina travelers.
The state’s $29 billion tourism industry, a key economic driver, would also suffer.
The State reported that the Credit Card Competition Act “could stifle South Carolina’s travel and tourism industry by causing credit card rewards and loyalty programs to be scrapped.” Fewer visitors mean less business for hotels, restaurants, and attractions, creating a ripple effect throughout the state’s economy.
While increasing competition in the credit card industry may seem beneficial, policymakers must consider the broader implications.
As a frequent flyer, I know firsthand how valuable airline rewards programs are — not just for work and personal travel but for keeping airports bustling, businesses growing, and tourism thriving. The Credit Card Competition Act threatens to dismantle a system that benefits millions of travelers while jeopardizing an industry vital to South Carolina’s economy. The stakes are too high to gamble with policies that could ground opportunity. Congress must reject this misguided legislation.
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ABOUT THE AUTHOR …
Micah Rea is the Founder & Principal of The Rea Group – a political and business consulting firm with almost 10 years of experience that has taken him across the country and around the globe. Prior to starting his consulting firm, Rea worked in the SC Governor’s Office under Lt. Governor Pamela Evette. In addition to his business, Rea is very involved in state, national, and international Republican efforts. He currently serves as the Chairman of the Young Republicans National Federation’s (YRNF) International Committee and the Chairman of the South Carolina Young Republicans (SCYR).
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