No More Rewards?

My sister loves her AMEX charge card and the rewards she earns. I listened to other family members and friends speak about the rewards they’ve earned by using their credit card.

Well, change is a coming, and getting something for nothing, may be a thing of the past.

In yesterday’s post I referred to an article in the January 2011 Issue of Kiplinger’s Personal Finance entitled “Discounts for Using Debit Cards: Lower Fees for Merchants Could Mean Money in Your Pocket.

The fourth sentence of the first paragraph states

This spring, the Federal Reserve is expected to issue new rules on the fees merchants pay when their customers use debit cards, paving the way for discounts if you pay by debit as opposed to credit.

The last five sentences of the third and final paragraph states

Might appliance stores offer free delivery for debit transactions? Or restaurants free dessert for using your plain-vanilla Visa? We’ll see. Card issuers have hinted that they might curtail rewards to make up for lost fees. But for now, shoppers can look forward to savings.

Hmmm, for the card issuer, a choice between losing fees (which translates into earnings reported quarterly and watched and scrutinized by CNBC and investors) or curtailing (or even eliminating) rewards for credit card transactions. The choice is easy. You can bank on the latter!

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