Re:U.S. credit card debt jumps 18.5% and hits a record $930.6B
by jlmorton on Friday February 03, 2023 @01:48PM
(#34645994)
Exactly. The interest covers the cost of capital, delinquencies, administration, but it's the merchant fees that are paying the rewards.
Before Dodd-Frank and the regulation of debit card interchange fees, many debit cards were also offering lucrative rewards, despite there being no interest at all. With debit cards now limited to $0.20 + 0.05%, those debit rewards cards are gone.
Before Dodd-Frank and the regulation of debit card interchange fees, many debit cards were also offering lucrative rewards, despite there being no interest at all. With debit cards now limited to $0.20 + 0.05%, those debit rewards cards are gone.