Centennial State News

Samuel Michael, President of the Colorado Ethiopian Community, expressed concerns that credit card mandates could eliminate reward programs relied upon by immigrants and working families. He said that such mandates would disproportionately harm jobs in the hospitality sector. This statement was made in an op-ed on March 25.

"I am very worried about the credit card mandates Joe Kefauver supported in his March 5 op-ed," said Michael. "The mandates will make it extremely difficult for credit unions and community banks to continue to offer these types of benefits. Using legislation to put new mandates on credit cards will hurt Colorado's economy, not help it. This will doubly hurt families — imagine losing your job while also losing credit card rewards."

The proposed Credit Card Competition Act has faced significant opposition from financial institutions and industry associations. According to the American Bankers Association, the legislation could negatively impact consumers and small businesses by reducing credit availability and increasing fraud risks. The Bank Policy Institute warns that similar regulations have previously resulted in a 30% decline in interchange revenue for exempt institutions, affecting their ability to serve customers. Additionally, the Credit Union National Association argues that the bill would allow large merchants to choose cheaper, less secure processing networks, potentially compromising consumer data security.

In 2022, the nation's six largest credit card issuers disbursed a total of $67.9 billion in reward redemptions and partner payments. This figure highlights the significant value consumers receive annually from credit card rewards programs. According to a LendingTree analysis, this amount reflects the growing popularity and utilization of such programs among cardholders.

Michael serves as the Executive President of the Colorado Ethiopian Community, a nonprofit organization dedicated to preserving and promoting Ethiopian cultural heritage. He also holds a position on the Aurora Immigrant and Refugee Commission, where he advocates for immigrant financial access and integration. According to CBS News, his personal experiences as an immigrant drive his commitment to assisting others in navigating resources and finding their voice in the community.