A new piece of legislation could change the credit card system.

<div class="block">A new piece of legislation could change the credit card system.</div>

Stretching Your Dollar

Proposed Bill Could Impact Credit Card Points

A new piece of legislation could change the credit card system as we know it. Illinois Senator Dick Durbin introduced the Credit card Competition Act in June. If it passes the bill would change the way purchases are processed on credit cards. Advocates say it would benefit retailers currently, banks who issue credit cards take a fee for each transaction and sometimes that's as much as 3%. The bill would allow retailers to work with processors who would not collect high fees. But critics say it could wipe out the credit card rewards system. The fear is that if big banks don't collect those fees, banks won't be able to fund all the rewards that shoppers earn.