Re:Apple announces Apple Card credit card
by tfehring on Monday March 25, 2019 @04:08PM
(#19486293)
For those of us who use credit cards with rewards, the rewards significantly exceed the price increases, because most of the price increases are paid by people using other payment methods.
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Re:Apple announces Apple Card credit card
by kevin_thibedeau on Monday March 25, 2019 @05:03PM
(#19486715)
They're mostly paid by people who carry a balance and incur interest payments. They fuel the rewards programs.
I'm sure interest revenue plays a role in determining the rewards that are offered, but the data suggest that merchant fees, which are largely paid for by non-credit-card-using households in the form of higher prices, are a bigger contributor. The average credit-card-using household receives a net transfer of over $1,000/year from non-credit-card-using households [0] (2010).
[0] https://www.bostonfed.org/publications/public-policy-discuss...