Credit Card Rewards.....

I'm reading that credit card rewards are about to be reduced big time. Apparently legislation may soon be passed altering the fee structure for using credit cards (that merchants now pay) - apparently these fees subsidize rewards such as the 5% I enjoy on groceries after my employee discount and the 2% I earn on anything else (though these days I don't use the card much due to how unstable all is). On the one hand, I do like to earn a few dollars on non-frivolous spending - on the other hand, if rewards were reduced, would this maybe stop a few people from having incentive to overspend? Though I will say that back when I was waiting tables and overspending, rewards reduction at that time would not have been enough for me to stop overspending as I was so on the treadmill.

What's your take on credit card rewards? Rob

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Originally Posted by gimmethesimplelife

What's your take on credit card rewards? Rob

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There's no such thing as a free lunch. Your "rewards" are being paid by you, through increased prices from the merchants.

I have great luck using cash, and negotiating cash discounts.

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Originally Posted by bae

There's no such thing as a free lunch. Your "rewards" are being paid by you, through increased prices from the merchants.

I have great luck using cash, and negotiating cash discounts.

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Yes, I have heard of other well off people able to pay cash for large(r) purchases and negotiate prices downwards based on paying cash. Do you find this easier to do with mom and pop kind of places, just curious, as opposed to corporate chain places? Rob

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Originally Posted by gimmethesimplelife

Do you find this easier to do with mom and pop kind of places, just curious, as opposed to corporate chain places? Rob

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I almost exclusively deal with mom & pop businesses, as we have no chain stores in the county, essentially. One of the many reasons I like it here.

Many years ago we "down-sized to one main credit card - an Amazon Chase. I don't have an amazon account but use the points for buying things I can't find locally when they add up to the free delivery required amount. However, I note that small businesses and municipal offices now charge a fee for using a credit card to cover their upcharge. I haven't checked lately but I imagine Visa and MC are making very good profits these days.

I don’t pay much attention, but somehow I do rack up $100 credits now and then. I charge a lot of things on my credit card, a lot. And I pay it off each month.

for years and years, I had a credit card that didn’t offer cashback rewards because it just wasn’t something that was on my radar even though DH told me I should get a card with the cashback rewards. But now I have a credit card that gives those rewards.


Dave Ramsey blows his stack when his callers start talking about the awards get with certain credit cards. Dave is adamantly against using credit, but his constituency is largely unable to pay their balance every month so for them, they need to learn not to rely on credit for anything.

I use reward credit cards frequently, and I currently have about $1000 in accumulated rewards. I usually redeem them when we go on vacation. I will be sad if reward programs are diminished, but it's not like I count on them to sustain me or anything.

I'm sort of like rr. We have earned cash-back, but tend to ignore it. I usually eventually apply it to the bill, keeping more money in my checking. lol.