An organization representing major credit card companies issued a strong rebuke of claims made against the industry in a video by the New York Times.
Richard Hunt, Executive Chairman of the Electronic Payments Coalition, refuted what he said are "deceptive, erroneous claims about credit card rewards.”
The video was posted on the New York Times website Tuesday and labeled as “opinion.” The creator of the video, James Robinson is identified on the site as a filmmaker, and has published other videos on the news site. His co-creator, Emily Holzknecht, is identified as an associate producer for Opinion Video at the New York Times.
The video claims credit cards that provide rewards for consumers are “actually bad for you, and for everyone else.” The video authors claim that reward programs force non-card users to pay higher prices for groceries and other goods.
The payments coalition said in its statement those claims have been debunked, and legislation endorsed by the New York Times staffers would harm consumers.
"Not only have these claims been soundly debunked, it is also well documented that laws placing new mandates on credit card routing would actually hurt low-income families.”
The video encourages viewers to support a bill introduced by U.S. Senator Richard Durbin (D-IL). Durbin authored similar legislation that is now law to change how debit cards operate. According to Hunt, “since routing mandates were implemented on debit cards, debit fraud is up 124 percent.”
The Electronic Payments Coalition has previously raised concerns about the security implications of Durbin’s bill. "Every time a consumer makes a purchase using their credit card, they have peace of mind knowing that they are protected from fraud,” Hunt said.
According to Hunt, the video attempts to discredit credit card rewards programs, despite their popularity. He said the New York Times video “shame(s) its readers for acting in their own best interest.”
"The facts clearly show credit cards offer businesses a valuable service and consumers easy, hassle-free purchasing power,” Hunt said.
