You've choosen:
INFORMATION CENTER
News and Articles about Credit Cards...
Read about Credit Cards before Apply!
News about Credit Cards
Consumers love their rewards credit cards, but retailers shun them
[12:00:00 AM Saturday, August 06, 2011]
It is not uncommon to see consumers signing up for various credit card offers just to avail the attractive rewards that come as a part of the package. In an urge to claim their rewards at the earliest, card holders use their cards liberally at almost all the retail stores they visit for their purchases. While they make points for the purchase made, retailers on the other hand have to pay high interchange fees to the banks each times their customers pay for the purchase using credit cards.
The president and founder of Merchant Fee Savers, Phil Hinke , says that of the total 70% of the transactions made using credit cards, 40% of them are made using cards with rewards. A majority of the customers who use credit cards for purchases are unaware of the fact that, in addition to the banks, the merchants also pay fees to the banks which contribute to the rewards they can redeem on their cards. In fact it may not seem erroneous to say that the rewards on these cards are funded by the merchants and not the banks.
Curtis Arnold, a financial expert, says that both small retailers as well as the large ones are at the receiving end. But the impact is more on smaller businesses since a large part of their profit goes towards paying the interchange fees to the issuing banks. While large retail store owners can strike a bargain with the credit card lenders to reconsider the fee because of the large number of customers, small businesses do not have this privilege.
Comments not found
The Latest Articles
[October 26, 2011]
Just because you don`t have a rewards credit card, doesn`t mean that your credit card can`t reward you. According to a MasterCard survey, 55% of consumers don`t know the extent of the benefits that their credit cards offer.
[August 31, 2011]
Every adult likes to travel light. The convenience of shopping without carrying an enormous wallet is something this generation has taken for granted. Credit cards are also a huge status symbol. Every adult remembers the glee and joy he or she felt when they received their first letter from some credit card company offering them a card. It proved that they had indeed arrived.
[August 23, 2011]
Consumers are increasingly using their line of credit due to rising inflation and gas prices. This has been revealed by First Data Corp`s report called Spend Trend. Credit cards are being increasingly used to pay for daily necessities such as gas as well as other basic needs. There has been considerable rise in food and gas prices as well. This is a direct fallout of inflation, but income has not gone up substantially to keep up pace with the inflation.
[August 17, 2011]
While most consumers are rejoicing about the increase in the number of credit card offers today, there are a few who are skeptical about the number of rewards cards solicitations that arrive in their mailboxes on a daily basis. However, Bill Hardekoph, the chief executive of a leading financial website, has said that there is absolutely no cause for worry. The rewards credit cards are the latest trends by credit card lenders, both large and small, to increase the number of customers. Of the many rewards cards that are flooding the market today, here are a few that are worth a thought.
