Washington Watch: The Future of Your Credit Card Rewards – What Travelers Need to Know

Here at Travelcardinsider, we know that for savvy travel  enthusiastslike you, credit card rewards aren't just perks; they're the gateway to more affordable and unforgettable journeys. That’s why it’s crucial to keep an eye on discussions in Washington D.C. that could shift how we all earn and burn those valuable points and miles. Let's break down what's happening and what it means for your travel strategy.

The Big Picture: We Love Our Rewards, But They're Under Scrutiny

It’s no secret that most of us cherish our credit card rewards. In fact, a Morning Consult survey from March 2025, commissioned by the American Bankers Association (ABA), showed an overwhelming 91% of cardholders value their rewards programsSource. More than that, nearly two-thirds (63%) said they’d be deeply disappointed if new regulations made these benefits vanishSource. That’s a powerful message from consumers.

Rob Nichols, the ABA's president and CEO, put the industry's view succinctly:

"consumers greatly value their credit cards and the rewards programs that come with them and don't support heavy-handed government actions that could take them away."Source

This strong sentiment from cardholders is a key factor in ongoing debates about how the credit card market functions. A central issue? Interchange fees – those small charges retailers pay each time you swipe your card. Some past legislative ideas, like the Durbin-Marshall bill, have aimed to change these fee systems. The banking industry consistently argues that such changes could dry up the funding pool for the rewards programs we all rely on.

(Travelcardinsider note: If you have access to further expert commentary on the pros and cons of interchange fee regulation from a consumer perspective, this would be a great place to add it.)

The CFPB: A Shift in How Guidance is Handled

The Consumer Financial Protection Bureau (CFPB) is the government’s watchdog for consumer financial products, and they play a significant role in overseeing credit card practices.

You might remember that back in December 2024, the CFPB issued a "circular" (which is their way of providing official guidance) specifically about credit card rewards. This document looked into whether it's a problem if card issuers or their partners devalue the points you've already earned or make it unreasonably tough to actually use your promised rewards. It was a clear signal they were focusing on fairness and transparency.

Fast forward to May 2025, and we saw a significant policy shift. On May 12, 2025, the CFPB announced it was pulling back 67 of its past guidance documents. This isn't just a minor tweak; it suggests a different way the CFPB plans to operate.

The agency has stated it wants to issue guidance only when truly necessary and when it actually makes compliance easier for companies, not harder. They also emphasized that guidance documents are generally not legally binding in the same way a formal rule or law is.

So, what does this mean for that December 2024 rewards circular? As of mid-May 2025, that specific guidance on credit card rewards was not on the withdrawal list. However, the CFPB also said they are still reviewing all their guidance materials.

While the rewards circular is technically still active, the regulatory air is definitely one of change. Some legal commentators have dubbed this a "red pen" approach, signaling that the current CFPB leadership prefers to rely more on formal rulemaking that sticks very closely to what the law actually says.

This doesn’t mean the CFPB is stepping back from protecting consumers. Rather, it suggests they might be more selective in how they issue new interpretations. For us travelers, the good news is that the underlying principles of fairness and transparency in rewards programs—the very things that December circular addressed—are likely still important. How the CFPB chooses to enforce them, however, might be evolving.

The "Credit Card Competition Act" (CCCA): Still in the Washington Mix

Another critical piece of this puzzle for your points and miles is something called the Credit Card Competition Act (CCCA). This is legislation that lawmakers like Senator Roger Marshall and Senator Dick Durbin have proposed in past sessions of Congress. The core idea is to inject more competition into credit card payment networks. How? Potentially by requiring banks to give merchants a choice of at least two different, unaffiliated networks (think Visa or Mastercard, plus another option) to route your transaction.

Supporters of the CCCA argue this could lower those interchange fees for merchants, who might then pass the savings on to us consumers in the form of lower prices. However, opponents, including the ABA and other financial associations, have serious reservations. They argue that forcing this kind of choice would dismantle the current system that, in their view, funds our credit card rewards.

The main concern is straightforward: if the revenue from interchange fees drops significantly, the money available for our points, miles, and travel perks could shrink or even disappear. Last year we saw how quickly issuers devalued points when costs spiked; a fee-routing shake-up could accelerate that. Indeed, an analysis by Oxford Economics suggested a bill like the CCCA could hit the U.S. economy hard and even lead to job losses by diminishing the rewards programs that fuel so much travel and tourism.

What's the latest? In May 2025, there was a legislative attempt to attach the CCCA's text as an amendment to an unrelated bill about regulating payment stablecoins (a type of cryptocurrency). This is a common tactic in Washington – trying to get a proposal through by attaching it to a bill that’s seen as "must-pass" or broadly popular.

The ABA and other financial groups immediately mounted strong opposition, urging senators to reject this amendment. They reiterated their deep concerns that the CCCA would effectively "rob consumers of their card rewards and leave them at greater risk of fraud." This just goes to show that the debate over credit card network routing and its potential ripple effects on our rewards is very much alive and kicking.

What This All Means for Your Travel Points on Travelcardinsider

Okay, that was a lot of Washington-speak! So, what’s the real bottom line for us at Travelcardinsider and for you, our fellow travelers? Are your points safe?

• Your Rewards Are Popular (And That’s a Good Thing!): The simple fact that so many of us (91%!) value our rewardsSource sends a powerful message to lawmakers. It makes it politically more challenging to enact changes that would obviously strip those rewards away. Think of it as a bit of a protective shield.
• The Regulatory Landscape is Fluid, Not Fixed: The CFPB's recent moves, like withdrawing dozens of guidance documents, show that how agencies approach these issues can change, sometimes quite a bit. While the specific rewards circular from December 2024 wasn't pulled in the May 12th action, the agency is clearly re-evaluating its stance. This could mean a greater focus on formal rules rather than informal guidance down the line.
• The Interchange Fee Debate Isn't Going Away: The attempt to attach the Credit Card Competition Act to the stablecoin bill is clear proof that the discussion about credit card network fees and routing is far from over. The ABA and other groups are actively pushing back against this, but it’s a reminder that we need to stay vigilant.
• Stay Informed: As always, the best defense is knowledge. Keep an eye on Travelcardinsider for updates on these issues. We’ll continue to monitor how these developments might affect your travel rewards and strategies.

In the meantime, keep enjoying those points and miles! They’re still one of the best ways to make your travel dreams a reality.