“Unsophisticated consumers” aren’t using reward cards with annual fees. It’s just the opposite. The ones with the higher incomes are getting rewards for spend

“Unsophisticated consumers” aren’t using reward cards with annual fees. It’s just the opposite. The ones with the higher incomes are getting rewards for spending. Why wouldn’t higher earners want reward cards? The merchants for the most part aren’t giving cash discounts and they aren’t going to lower prices - they are going to increase their margins.