Not sure about that. Consider that in Europe, credit cards are not as popular, perhaps in part because there's not much in the way of rewards programs. An oft-suggested reason for that is because card fees are legally capped pretty low in Europe.

You try to explain why you don't necessarily agree and in doing that you confirm everything the parent said. Very confusing.

They probably weren't talking about high interest but vendor fees instead

Yeah it is actually pretty insane, the middle class with a barely handle-able debt load are paying for the upper middle/upper class to have free flights, etc...

Even without the cards they are still doing that, hah

What's fun, is if you run the math (let's assume $1k card) - the credit card companies make more money if you charge and pay off your $1k each month than if you charge $1k and then pay interest on it.

Let's assume 3% merchant fee, they get 3% of each charge, so $30 a month, for $360 in a year. Most cards max at 30% interest, which would be $300 a year (technically less because you're paying it off each time). Even with the 3% once, that's $330.

The banks aren't dumb. The interest they make is gravy.