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Credit card rewards create a very bad incentive because they push consumers to choose cards with high merchant fees, who then have to rise their prices and make
by konschubert 8y ago
Credit card rewards create a very bad incentive because they push consumers to choose cards with high merchant fees, who then have to rise their prices and make everybody pay the bill.
Thus creating a race to the bottom with ever-increasing credit card fees.
- sitkack 8y agoThis needs to be stated in more ways. Credit cards themselves encourage inflation (credit card fees, offset payments, lack of savings to pay for goods). And those same rewards programs are paid for with merchant fees, further encouraging price inflation.
- edbaskerville 8y agoYes! We should simply make credit card rewards illegal in a more direct way. Effectively, people with low-paying rewards cards—and people paying in cash—are subsidizing people with high-paying rewards cards. In other words, credit card rewards are yet another wealth transfer from poorer people to wealthier people.