I typically write about all of the smoke and mirror benefits that credit card companies advertize. I write about the consumer traps that exist with these marketing programs. I never get to write anything good about credit card companies…..until now.
Yes, believe it or not, credit card companies are bolstering up their reward cards and making them a much better deal for the consumer. However, there is a motivating factor behind this move. Banks are just not making as much money every time you swipe the debit card. As a result, they would prefer that you swipe the credit card instead (where they make higher fees)
The politicians changed the game for the banks by reducing the amount of money that they can make every time you swipe the debit card and pay for something. However, they didn’t change the swipe fee for credit cards and also left pre-paid cards out of the mix. This is why you are seeing the emphasis put on pre-paid cards. This is where the money is.
So, double check and make sure that you are getting the best deal on your rewards program. Here are some of the nice advantages of the better cards:
- No membership fees
- Up to 2% cash back
- Sign up bonus points
- No expiration period for reward points
To get a look at some of the best cards, check out the bankrate.com study.