Discouraging branded cards with rewards attached
Instead, the US emulated only the worst aspect of what was introduced in
whatever Australia. Merchant jubilation over the new found ability to point customers to "cheaper" credit cards ought to be circumscribed.
A logical scenario in the post-decree period in a hotel could result in a hotel front desk employee to suggest to a weary traveler they use a credit card without rewards to save a few dollars. That is clearly missing the forest for the trees if not shooting oneself in the foot. Major hotel players, like airiines, have branded cards.
Discouraging branded cards with rewards attached, which is an expected consequence of the government's move, will cause hotels to lose at many levels. These range from loss of customers staying with "points" (who tend to spend with real cash while in the hotel) to developing brand loyalty. With regard to American Express, hotels know fully well just how much more desirable customers using those cards are. Beyond that, as a company, American Express is a mine of marketing information for hotel merchants.
