Comment by ajkjk
6 hours ago
um, the same system we have today but with less rent extraction
and don't pretend like it's not possible, it's obviously possible: take the system and lower the fee to something proportional to the price of providing the service
if credit card rewards programs have to go to make it economically viable -- awesome, that would be a second win.
I like rewards programs and disagree that it would be a win. Your suggestion puts me in an objectively worse position.
in the paradigm where rewards programs go away, prices at stores are also 1-3% cheaper across the board because the rent-extraction of credit card fees is removed, so make sure you're considering that scenario fully.
it's possible that with the fees removed cards still have rewards because the premium cards still want your business (they have other mechanisms for making money than just interest + fees, cf https://www.bitsaboutmoney.com/archive/how-credit-cards-make...)
however I maintain that credit card rewards are a net drain on society. Paying for things should just be paying for them, not a complicated system that generates fake money points that you can then turn around and spend in bizarre ways if you remember to. The whole system is stupid.
Okay, so which side is in the majority? The people who have credit card debt or the people who are using rewards programs in a way that doesn't put them in an objectively worse position? Let's help whichever side is larger.
Why would we help whichever side is larger?
The current status quo is a result of free association. If people prefer to have credit card debt or use rewards programs poorly then I have no issue with continuing in this manner.
same. pick a card w good rewards, pay the statement balance to $0 every month, reap some benefits while strengthening your credit score.
The fees are larger than the rewards. Most business people pay with credit card is competitive. Retail and restaurants absolutely do pass savings on to customers because of how high competition is.