Sunday, Dec. 4, 2022 | 2 a.m.
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Over the past two years, we have seen Nevada’s economy rebound in a remarkable way. From the depths of the pandemic, we have recovered every job lost and we have reached an all-time high in employment with 1.4 million jobs. The scenes of boarded-up casinos are now replaced with record hotel bookings, record visitor numbers and even a record surge of new small businesses, doubling the national average. But every Nevadan knows that we must always be prepared for whatever economic future comes at us. That means we must be resilient and ready to defend our jobs, our families and the growth of our economy.
Unfortunately, a growing potential threat to Nevada’s economy comes from a bill working its way through the U.S. Senate called the Credit Card Competition Act. This bill would force banks to open up their credit cards to “unaffiliated” interchange networks to process credit card transactions. These networks are cheaper because they skimp on things like fraud protection and security. They also wouldn’t provide the credit card rewards programs that Nevada families and businesses depend on — Chase Ultimate Rewards, American Express Points, Cashback, Marriott, Delta rewards programs, to name a few — all of which are funded by the interchange system.
This bill would hurt Nevada’s economy in two ways. Nevada and Las Vegas remain top destinations for leisure travel, and credit card points remain one of the most popular ways to fund a trip to our state. There are even travel guides that share the best tips for using points. By eliminating these reward programs — like the Credit Card Competition Act would do — they would wipe out one of the primary drivers of Nevada’s economy. Worse than that, it would transfer $40-$50 billion in yearly consumer rewards from families to the biggest corporations in the world that are pushing this bill. Removing a primary method families use to travel here means that these families won’t travel here.
But that’s not all. Because the bill would basically eliminate interchange systems and fund the services banks currently provide, banks would turn around and tighten their access to credit and raise fees on consumers. In fact, this is what happened in 2010 when a similar bill was passed targeting debit cards. Banks raised fees and minimum balances, and essentially made it harder for low-income people to access financial services.
If we let this bill change our credit system, banks will raise fees, credit standards and interest rates. A 2021 study estimated that this bill would eliminate credit access from 10 million to 15 million people, mainly in financially marginalized communities. The Latino Coalition, which is composed of Hispanic business owners across the country, opposes the bill because it severely hurts Latino businesses and consumers, and potentially prohibits 7 million Latinos from accessing financial services.
As chair of the Nevada Commission of Tourism and a champion of small businesses with my Office of Small Business Advocacy, I know this bill would harm our state, our economy and our families. That’s why I’m raising my voice now and urging all Nevadans to let our federal delegation know their thoughts on this issue.
Thankfully, we have strong champions in our federal delegation who have and will stand up for families and our economy, and I know they will always do what is right for Nevada. Let’s come together and share our voice so they can let their colleagues know that this bill is wrong for consumers and wrong for Nevada.
Lisa Cano Burkhead is an educator who currently serves as the 36th lieutenant governor of Nevada.
