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I think the bonuses are primarily paid for by the interest charged to people who carry a balance, since the entire point of the rewards programs is to create cu
by the_watcher 8y ago
I think the bonuses are primarily paid for by the interest charged to people who carry a balance, since the entire point of the rewards programs is to create customers who carry a balance.
- ceejayoz 8y agoAt least some of the cost is borne by merchants - rewards cards have a higher interchange rate. https://www.nerdwallet.com/blog/credit-cards/money-credit-card-rewards/ https://www.nerdwallet.com/blog/credit-cards/money-credit-ca...
- cmurf 8y agoYes, if there were a law requiring the consumer pay all fees for their specific card, this form of freeloading wouldn't exist.
- ticmasta 8y agoThis is true. The fees pay to run the program including all the front-end companies that sell card products to the market; the banks financing it want those big, juicy 20% APRs