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I trust our corporate overlords to win this one.
This. Durbin is a bozo and this particular bill will go no where.
Help me understand the argument for why I should be opposing it. How far off am I?
1. Credit card companies use points to create an incentive to for consumers to use their card at merchants.
2. Because consumers are using the card more to get more points, the bank/credit card company makes more money off swipe fees (more swipes = more $$ from swipe fees).
3. If the swipe fees are reduced, the ROI on issuing points for consumers would be lower, which may lead to the reduction of point earnings or elimination altogether.
I don’t know enough about the credit card industry, but have points always been offered? Have swipe fees always been in place? If point programs were adopted after swipe fees, were the swipe fees increased to maintain profitability?
+1 for attempting to understand the pros and cons before taking a stance!
I'm fine with CC points going away.
RSM1 are you suggesting people spend $100 to get $1-2 back in points?