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The credit card company doesn't lose money. They charge a settlement fee to the government, which more than covers the cost of the rewards program. So only the
by bdonlan 14y ago
The credit card company doesn't lose money. They charge a settlement fee to the government, which more than covers the cost of the rewards program. So only the government (ie, the taxpayers) lose out here.
- WildUtah 14y agoThe taxpayers also don't lose out because the mint makes the coins and mails them and pays the credit card settlement fee for less than the face value of the coins. Nobody loses, except people who object to the subtle inflation by seigniorage. The Federal Reserve can control that anyway.