It's kind of like casinos that crack down on card counters. You are only allowed to play if you are stupid.
You make NO sense, whatsoever. You do realize this, don't you? You are claiming the people who default on their credit card bills have subsidized me? The merchant or restaurant that takes my credit card pays 2% to 3% for each swipe of my credit card to the credit card company. I have never not paid, let alone been late, paying my full balance in my life.
Finally. Creditcards were the one area where the irresponsible subsidized the responsible. In most areas it was the other way around. Finally the responsible has to pay for itself.
Unfortunately, the smart people will just leave credit card companies altogether. Then the stupid people can all be merry together while getting raped by the credit card companies.
I did not say that people who default on their credit cards are subsidizing you, I said those who pay cash and who carry balances are subsidizing you. The split on the transaction fees that banks receive does not pay for the technology, 25 day free loan and rebate/miles etc. that you receive. That is why the banks call people like you who pay off their balances..... DEADBEATS. The real crime is how people who pay cash have been forced to pay higher retail prices to subsidize rebate credit card holders. Robbing Peter to pay Paul. Socialism.
i think what he is saying is that high fees and intrest. subsidized the cash back reward programs. So claming that by losing your rewards your subsidizing the irresponsible is wrong. You got the rewards because others paid high interest and fees. The holders who defaulted didn't help you get and CB at all
Bullshit... I have a card with Citi that gives me between 1% and 5% cash back on every purchase and I've had it for years and I've always paid my balance in full each month. I charge almost everything on it to get the rebates and whenever I call them with a question or an issue, they fall all over themselves to kiss my ass and do whatever I want. So they're losing money on me but bending over backwards to give me rebates and to serve me out of the goodness of their hearts? Bullshit. It's the merchant fees they get from my purchases which BTW I subsidize when I buy the stuff to begin with.
Exactly - Trader666 has it right. The merchant fees are where they made money off of me. If I charge 75k on my credit card per year, they make 3% from the merchants from that, which is $2250 a year right there. I'm serious - watch and see what happens when they try to institute annual fees and other fees - people who pay their balances of at the end of each month will cancel their cars and use debit cards or cash, period.
Think about it, the bank's transaction fee is 2-3% and they have to split that with MC or Visa. You are getting rebated 1-5% and getting a free loan for the month and getting the technology and customer service. All that cost the cc company money. The only reason they are nice to you is that they are hoping you will screw up and start paying 20-30% interest on a balance. That is why they do those teaser 0% cash advance loans. They know that a certain percent of people will lose a job or get sick and be late on the cash advance whose interest immediately skyrockets to 29%.