Steven Pearlstein of the Washington Post explains how credit card companies can give all those great rewards to the high-end card holders:
"Because while everyone pays the higher retail prices necessary to cover the "swipe fees," only those with rich rewards cards actually get the kickback. In effect, they are subsidized by those who pay those higher retail prices with cash, debit cards or standard-issue credit cards."
So if you were wondering who pays for all those great rewards for Platinum card members, the correct answer is YOU.
No comments:
Post a Comment