“There is an existential crisis happening around the rewards and credit card space,” Kelly told me last week. “I don’t think enough people realize the ramifications of these laws.”
He’s right: If retailers can choose which network to use for transactions, they’ll naturally pick one with lower swipe fees than the 2-3.5% that credit cards often charge. For consumers, that could mean fewer points and possibly fewer of the fraud protections or other perks that those fees help sustain. The Illinois ban on fees for taxes and tips adds another layer of friction.
