Yes.
South Dakota landed several major credit card companies after 1980 because of the state’s lack of laws restricting interest rates.
In the 1970s, credit card companies were losing money with every swipe because most states had laws that capped interest rates.
The lack of a usury law in South Dakota combined with a Supreme Court ruling that said companies could use the state’s laws where the company was headquartered led to a financial boom. Even if a card was used in another state, South Dakota laws governed interest rates.
"The three best things that ever happened to South Dakota were the Homestead Act, the sculpting of Mount Rushmore and Citibank coming to Sioux Falls,” said Ron Williamson, chief of staff to then-Gov. Bill Janklow.
Today, Wells Fargo, Citi and First PREMIER Bank/Premier Bankcard are three of the top 15 employers in Sioux Falls, employing up to 5,000 people.
This fact brief responds to conversations such as this one.
Sources
Cambridge University, Why your US credit card bills come from Sioux Falls
Marketplace, Sioux Falls: The town credit built
Sioux Falls Argus Leader, What really happened to land Citibank
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