Originally Posted by SunDeck
You are probably correct- we use a rewards card to generate 3-5% savings on a lot of purchases, all stuff we would be buying anyway like gas, groceries, etc. And we pay ours off every month, but I can't imagine the program would work for the bank if there weren't a lot of revolving debt out there.
Personally, I can't remember when I had a balance last, being an old fashioned West Sider and if memory serves correctly, in German the word for debt is the same as the word for guilt. Says a lot about the way I was raised.
The credit card companies and banks charge the retailer fees per transaction in exchange on letting them use their credit card system. The cost of these fees are passed on back to the consumer in sales price. People who use these cards do make out, but people who use cash are being "taxed" by the higher price paying for the fees for the credit card users getting rewards.