Get ready for an inspiring journey at the Skift Aviation Forum in Dallas on November 12, 2024. This event gathers industry leaders and visionaries to illuminate the latest trends and transformative developments shaping the future of aviation.
23.10.2024 - 15:35 / thepointsguy.com
Over the last few years, the federal government has shown an increasing interest in credit cards and points and miles. Much of this originated with the proposed Credit Card Competition Act, but it has since expanded to major airlines and the loyalty programs they offer. Incidentally, the two original cosponsors of the CCCA were the first to call for an investigation into these frequent flyer programs — a call that ultimately led to the announcement of a formal probe by the U.S. Department of Transportation.
While these efforts at the federal level haven't led to any concrete action (yet), state governments have recently opened a new front in the battle over the credit card transaction process.
Here's what you need to know about current efforts underway across the U.S. to implement legislation that could upend the way you pay for goods and services.
First, a quick primer on the mechanics of a credit card transaction.
Every time you use a card to pay for something online or in a store, the merchant is charged a small percentage of the purchase amount — which averages out to roughly 2% — to process that transaction. This is typically referred to as the interchange fee, which is shared among the card's issuing bank, the credit card payment network (most often Visa, Mastercard or American Express) and the merchant processing institution.
All parties use this interchange to safeguard the purchase, prevent fraud and fund rewards programs by issuing points, miles or cash back.
As a consumer, you're protected from unauthorized charges, and you're the one choosing the card (and network) for the purchase. Meanwhile, small businesses enjoy a near-frictionless transaction process, with minimal risk of loss or theft — a major concern when handling cash transactions.
Unfortunately, some states are considering new laws that would drastically change the experience for customers and businesses — and one has even become law.
Earlier this year, the Illinois state legislature passed a large budget bill, and it was signed into law by Democratic Gov. J. B. Pritzker on June 7. In it was a provision that would bar credit card companies from collecting interchange on taxes and tips (if a merchant opted to separate those items out).
It may seem right to exempt these items from interchange. After all, a business is collecting them on behalf of others — whether it's a taxing authority or a tip-eligible employee. Nevertheless, the swift passage of the measure with little discussion (it was introduced just days before the end of the legislature's spring session) created more questions than answers.
Unfortunately, there were no additional details on how the new regulation would be implemented. That leaves it largely to the merchant,
Get ready for an inspiring journey at the Skift Aviation Forum in Dallas on November 12, 2024. This event gathers industry leaders and visionaries to illuminate the latest trends and transformative developments shaping the future of aviation.
Good morning from Skift. It’s Wednesday, October 23, 2024, and here’s what you need to know about the business of travel today.
NYC Tourism + Conventions, the city’s official destination marketing organization, announced Tuesday that it had named Julie Coker its next president and CEO.
NYC Tourism + Conventions, the city’s official destination marketing organization, announced Tuesday that it had named Julie Coker its next president and CEO.
It’s always a thrill to pull out of a train station and feel yourself picking up speed, wheels click-clacking over the rails. It’s even more thrilling when your train has no roof or sides, is as low-slung as a Mazda Miata and comes with a warning to watch out for bears crossing your path.
If you hold elite status with Delta Air Lines, United Airlines or Southwest Airlines, American Airlines is offering to match your status for at least four months so you can earn status in a different loyalty program without having to start from scratch.
Have some extra American Airlines AAdvantage miles to spare?
Aer Lingus is launching service to a new U.S. city, helped by the arrival of its newest aircraft type.
I've had a soft spot for American Airlines Flagship First for more than a decade. It's the last true international first-class product being flown by any American carrier. But Flagship First has been around since the early 2010s, and American plans to formally retire the product in the coming years.
Oct 18, 2024 • 8 min read
An upgraded travel experience just got cheaper. Delta Air Lines recently released hundreds of flight deals in their premium cabins, such as Delta Comfort+ and Delta One for travel throughout the fall and winter. Many of the tickets are priced under $1,000, and travelers can also redeem miles from Delta's SkyMiles program for seats at a discounted rate as well. Some of the lowest-priced flight deals to Europe include New York-JFK to London-Heathrow for only $703 round-trip in Comfort+, or 59,000 Miles, valid on travel from January 7, 2025 through March 6, 2025.
Amtrak currently operates 39 routes, with trains criss-crossing the country to service 500 destinations in 46 states. Starting November 10, 2024, however, the number of Amtrak routes will go down one notch to reach a total of 38. Amtrak is cancelling two routes and launching a brand new one between Chicago and Miami called The Floridian.