Credit Card Rewards
Commenters debate the value of credit card rewards, cashback, and perks compared to alternative payment methods, noting how rewards are funded by merchant fees passed onto all customers.
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All credit card 'rewards' seem to work like this.
Why should I use this instead of my rewards credit card?
Someone has to foot the bill for credit card rewards
Are there any consumer benefits, ala rewards, for using this card?
But credit cards do exist. And the person is getting a rebate over paying cash.
Won't they miss out on all the perks of credit cards (i.e. Discover cash back rebates, airline/hotel miles, etc )
You need to use credit cards for the rewards too. Credit card rewards eat a couple % of the merchants' profits, which they pass along to all customers in the form of higher prices. Therefore people who pay by other methods are effectively subsidizing the frequent flier miles and Red Lobster gift cards of those who use credit.
You are also describing credit cards. That's the trade you made to get a 1-2% reward.
I doubt they're giving you more in cashback than they make from transaction fees.
Which card gives you 4-5% cash back?