Comment by _benj

What a fascinating article. Probably an unsophisticated model but the way I approach my credit card rewards program is as a “forced savings” deal. I’m aware that they are subsidized, I’m also aware that I’ll pay the same thing if I were to pay with cash (at least in all the places I buy).

Would we be better off by having capped swipe fees? Idk. Would merchants actually lower their prices instead of keeping the extra revenue that everybody is now used to pay? Idk either. I don’t trust in the goodness of the heart of merchants or credit cards issuers.

But, would I have an unexpected 3 or even 4 figures “unexpected” rewards at the end of the year that I can only use for vacations? I don’t think so. I could possibly set up something with my bank, but I don’t need to think or plan rewards… they just happen.