The whole law and its precursors are poorly written. It's all reactionary and heavily lobbied, with no thought put into likely side effects.

Because of how banking transactions are regulated in the US, our cards have much worse security than any other country and force vendors to directly take the fraud losses, while charging them higher transaction fees. The more we try to fix it, the worse it gets.

Even if you want to use a debit card to get the added security of a PIN, if the card number is exposed in a data breach it can still be run as a credit card.

There is some hope that newer payment processors like PayPal and CashApp can get a foothold, but chances are if Visa and MasterCard start seeing some real competition, we'll get another act ensuring that Visa and MasterCard are the only viable options.

US hotels generally want a real credit card specifically to minimize fraud and damage risk. They usually won't accept random apps like PayPal or Cash app. At least with a physical credit card if the guest trashes the room then the hotel can try to run additional changes beyond the hold amount.