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Should Reward Credit Cards Be Banned?
- deleted 9mo ago[deleted]
- josephcsible 9mo ago> APSW looked at “Net Rewards”, which is the rewards a credit card user gets minus the fees and interest they paid on the card. If you're paying interest on a credit card, you're using it wrong, and the rest of us shouldn't have to give up our rewards to shield you from the consequences of your poor decisions.
- BenjiWiebe 9mo agoNo kidding. For that matter, if you're paying annual fees, you're doing it wrong (unless you KNOW that you aren't).
- nutjob2 9mo agoYes, but if people didn't carry balances and incur fees there wouldn't be money for rewards and various bonuses and promotions.
- toast0 9mo agoI think if you limit interchange, reward cards will disappear or at least reward rates will drop significantly; and that would be good enough. Some banks will sometimes pay more in rewards than they collect in interchange and they must make up the difference in fees and cross-subsidies, but I don't think they'll pay out nearly as much as they do now (lots of 2% on everything options, you can get more if you jump through hoops and didn't miss out on grandfathered cards) With the EU limit of 0.3% on personal credit card interchange, I don't think they get much in the way of rewards cards; although I've heard business credit cards don't have limited interchange, so there's some larger rewards available if you can swing a business card.
- nutjob2 9mo agoAmerican reward cards still work fine in the EU yielding 2% on all purchases, 3% on groceries and 5% on time limited categories.
- ThePowerOfFuet 9mo agoYes, because the cards are issued outside the EU. The merchant pays the price.