New credit card law could dramatically change rewards points system, says The Points Guy
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- čas přidán 10. 07. 2023
- Brian Kelly, founder of "The Points Guy", joins 'The Exchange' to discuss how the Credit Card Competition Act would dramatically change the rewards ecosystem, how the legislation would scale back points programs, and the retail lobby's efforts to back the act. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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People: IF there's no 3% credit card charge ----do you really think WalMart, McDonald's, Pepsi, Tj Maxx, Tiffany's, whatever isn't GONNA KEEP THE 3%? They aren't gonna give the money back to us - no way.
We don't know likely not but competion will likely grow and smaller Shops will profit from it.
@@paxundpeace9970 Does this mean, when someone buys a $700 phone - will Apple give them $21 off? OR keep it as profit ...what would shareholders prefer? Ditto Tiffany's on a diamond or WalMart on a t-shirt. All their investors want the profit -rightfully so.
Exactly
That's not how economics works. All businesses can't just add 3% higher margins indefinitely. There's a thing called competition where businesses undercut competition to make the sale. There's a reason companies like Walmart have a 2% net profit margin. They are competing on price.
@@DrFrasierCrane You mean how cars are marked up over sticker? And how anyone from Pepsi to McD is celebrating huge profits? People pay - - $10.00 for lunch. The merchant isn't gonna say "hmmmm, let's just give him 30 cents back cause our commission is lower....even though the man is used to paying $10 all this time". They wouldn't be adding 3% -- they'd merely be charging what people are used to paying. My morning Dunkin order is $3.40. I get 10 points towards my travel. If I didn't get the points - whey is Dunkin gonna cut the 3% off my price when they know I've been coming every day for years?
Fraud protection should absolutely be required in all credit card transactions.
💯
I could somewhat agree with you, but the protection burden is unfairly placed 100% on the merchant and that’s where the fraud comes into play, the cc bank shares zero burden, thus the system is drowning in fraud and the banks don’t care because they still make money regardless.
I think the guest was lying about that as I do not think this new law affects fraud protection. This is set by law, and there is nothing removing that protection.
@@pah1921il I don’t believe retailed are 100% on the hook for all fraud issues, where do you even get such a statistic?
It's already there genius. The govt is trying to take that away. Try to keep up 👍
What wasn’t said was all the fees the merchant pays to the networks and the banks to accept that debit or credit card. It is the Banks who are making all the interchange as revenue and the merchant is trying to save some of those fee amount
Yes, but the retailers have already built the fee costs into the price of the goods they are selling.
Great for the merchant. Bad for the Credit Card user. So when I rent a car and use my CC to pay for it, I'm covered if I decline the insurance protection. If this bill passes that would go away or at the least, create confusion as to which network the merchant chooses to use. The merchant will always choose the network that benefits them which is the cheaper network. Why even have two networks?
The notion that credit cards are great for the merchant is so false… Credit card companies, ie banks are the only ones that profit from cc transactions, the merchant pays dearly for it, they have nothing to gain.
Rather than let the merchant decide, perhaps they should pass a bill allowing the consumer to decide at the the point of sale and make the interchange fee added to the top line.
This May be bad for the consumer but is sounds fantastic for small businesses as they can reduce the 3% charges as well
not only for small businesses it is good for employees too because of lower cost for the business. So this would allow for higher wages, if negotiated properly. Good for consumers too because lower cost lower prices.
This is not true. Your card has the fraud protection not the transaction network and respective fee. Very poor reporting on facts. They should have shown on screen sponsored by Visa and MasterCard!
You really believe they gonna reduce prices??😂😂
Consumers won’t see the savings
It is bad for business too.
Why?
Credit card companies provide value to customers and merchant taking the risk, guaranteed payment, and fraud monitoring. Of course nothing comes free.
People are more like to spend with credit card rather than cash.
With no low interchange fees, credit cards companies will reduce their operation cost by reducing fraud monitoring and not taking significant risk (for instance, making a card a premium product).
As a result, credit card may not be average person's thing, and people are less likely to spend; which means bad news for merchants too.
this kinda sounds like a scare tactic from credit card companies.
I don't think CC networks have another tactic on hand. I see it as an expansion of those "Apple Pay" (Walgreens) or "Pay Pal" (Home Depot) icons on many retailers. fwiw, I don't know if those share bandwidth with the Visa/MC duopoly.
@@reensure I know but we had this before by other major retailers that did not see success from it. You really need a large network like you hinted with bandwidth.
It is a scare tactic and this clown doesn’t have another job without pushing points. Total POS.
The credit card transaction fees are opaque. As a consumer you already don't have a choice of what the transaction fee is going to be. It only helps the settlement network owners and big retailers who have negotiation potential and margin to support it.
It also reduces minimum spend requirements that are at small gas stations or microtransactions for apps/games.
F this regime that represents everything but Americans
Credit card companies do not charge from consumers directly. They charge around 10 cents
from card-issuing bank and acquiring bank (merchant's bank). That is the processing fee.
Credit card companies provide value to customers and merchant taking the risk, guaranteed payment, and fraud monitoring. Of course nothing comes free. Credit card companies charge from the merchants and banks for providing these values. Then credit card companies pass rewards from the interchange fee that they take from the merchant to the issuing banks.
Bank pass that rewards to the customer. This is a positive feedback for customers to spend more which is beneficial to the merchant.
Credit card are actually better than cash in many ways.
E.g.
1. Customers: With cash, you take your own risk. A simple thing like keeping money in your pocket is not as safe as keeping a credit card in your wallet. If someone steal your money, you are done. But if someone steal your credit card or do fraud, credit card company take that risk by paying back the customer.
2. Merchants get more business: people are more likely buy things when they have an easy, convince way to pay. In cash-based societies, people think million times before purchasing something.
This is such a poor interview. Cnbc should've had some opposing viewpoint instead of just a guy who makes his living selling credit card referrals.
Amen. All news should have both points of view.
This just sounds like he’s a lobbyist paid for by the CC companies.
I sent an email to my HR rep expressing my opposition to this legislation. Her reply to me was that this would be beneficial and "create tangible benefits for small businesses and consumers". She seems to think companies would lower their prices and there would be no compromise in inancial security. I couldn't believe it!🤬
What's to stop a retailer from not accepting the premium card and keeping the fee?
Would it be any surprise the points guy CEO would side with keeping the existing system? His job, company, website and world is on the line. That’s a biased view he’s portraying hiding it behind “hurting the consumer”
Many people use points to travel. Others get cash back. He is actually right.
@@runner-jm2kfyes but transaction fees mean retailers and others have raised prices in order to absorb those credit card fees. For instance Walmart has 2% net margins which means they’ve built credit card transaction fees into their pricing.
So if you don’t use a credit card you’re really just paying higher prices and getting no rewards. The proposed law would do away with a lot of those fees and make it to where people who use cash are on equal footing to those who use their cards.
They always raise prices ... u think since they've raised them that they'll now lower them?? Keep dreaming
is it me or was this explained poorly?
I don’t care if I lose my 2% cash back if my transactions cost 3% less.
It wont though. Retailers are not going to lower their prices if they save 3 percent.
Not a problem, for sure. I'm keen to learn of the next great disruptive tech that gives more equal access at a greatly reduced cost. I sure don't think this bill provides it.
should worry more about all the credit card skimmers making everything more expensive.
@@antoinettepettis3825 we don't have any evidence to be making claims like this
@@antoinettepettis3825 very incorrect. This is money banks and credit card companies make that retailers have to pay. Retailers are always looking to save to compete with each other for customers so the saving would come back to customers. Retailers are publicly traded and you can see that margins of most are very reduced.
On the other side banks and credit card companies have huge margins and major profits and very little competition.
Visa makes more profit than Walmart for example it’s all public available information failed with the sec.
Don’t give 1% cash back, give back 3% of unjustified fees!
Google AI says this about it:
The Credit Card Competition Act of 2023 is a proposed piece of legislation that would require the largest credit card issuers in the United States to enable at least two credit card networks to be used on their credit cards instead of just one. At least one of those networks must be a network other than the Visa/Mastercard duopoly.
The goal of the bill is to increase competition in the credit card market and reduce excessive credit card fees. Currently, Visa and Mastercard have a combined market share of over 80%, which gives them a lot of power to set fees. This can lead to higher prices for consumers and businesses.
The Credit Card Competition Act would give merchants more choice in which network to use to process credit card transactions. This would create competition between the networks, which could lead to lower fees. The bill would also prohibit credit card issuers from imposing certain limitations on the routing of electronic credit transactions.
The Credit Card Competition Act has been introduced in both the House of Representatives and the Senate. It is still too early to say whether the bill will pass, but it has the support of a number of consumer groups and retailers.
Here are some of the potential benefits of the Credit Card Competition Act:
* Lower credit card fees for consumers and businesses.
* Increased competition in the credit card market.
* More choice for merchants in which network to use to process credit card transactions.
* Improved security for credit card transactions.
The bill has also been met with some concerns, including:
* The potential for reduced credit card rewards.
* The potential for increased fraud.
* The cost of compliance for credit card issuers.
It is important to note that the Credit Card Competition Act is still a proposed piece of legislation. It is not yet law, and there is no guarantee that it will pass. However, the bill has the potential to make a significant difference in the credit card market, and it is worth keeping an eye on.
the banks will go to blockchain soon. mark this post.
Much more nuanced and informative than a lobbyist.
Do you actually think retailers like Walmart or target will pass savings to consumers? Or just their shareholders and executives
@@csep917 who said they would pass on savings?
@@wackzingo precisely, it’s not even in he conversation…. so there is literally no benefit to consumers and any of the alleged “pros” are just lobbyist nothingburger language.
The Points Guy has the most to lose from this legislation. The rest of us will be fine. And as usual, banks will be better than fine.
Some of the rewards cards have fees up to 5%...In my business I will either stop accepting credit cards or add a cc transaction fee to help cover some of these high fees. This guy is all scare.
That is only way that is fair that you have to pay an additional fees for using the credit card.
Please stop accepting credit cards and go out of business.
@@eco-enjoyer I really don't understand that logic. We live in a society where cash is barely carried. He will hurt his bottom line end of the day.
@@rgalv3 "cash is barely carried". Just because you don't carry it, doesn't mean others don't.
@@eco-enjoyer they literally are posting notes there is a shortage in cash. Only older people carry cash.
Retailers would be able to lower the prices if they save on the fees. This bill is setting the stage for digital payments that won’t require cards. It’s already as good as done.
Trickle down effect in a time of inflation ??? Keep dreaming. If u get a raise today do u turn to ur babysitter and pay her 10% more?? 😂
As a consumer, I don't really care about "perks" and "points", but moreso, how can we take costs out of the system so that interchange fees are minimized. Certain fraud protections and liability limits are mandated by law. The oft-cited phrase about "No such thing as a free lunch" seems to apply here. Brian Kelly sounds like a lobbyist - he was the founder of the site and then sold for huge cash.
Why do you think retailers, beholden to shareholders, are going to pass the savings on to you? It makes even less sense for a small business owner to pass the savings on to you, they’re probably struggling most of the time.
@@ThePsam3 I would rather take bloat out of a system than pay for something of little value. Not all retailers have shareholders, FYI, and your assumption about small business is uninformed speculation and wrong.
The part of the conversation that is missing is that people run up debt on credit cards buying things they can’t afford to get a measly amount of points. These reward programs trap people into high rate debt that most never get out of. Disincentivizing credit card use would lead to overall less consumption which would affect prices also. This could actually help produce the financial reset that this country needs.
Competition has been wiped out by companies like Amazon being a.. Prime example. Congress of course has been paid off to keep quiet. Retail as a whole needs a big shakeup and Visa/Mastercard overly dominating is a part of that.
Really going to hurt those who use credit cards responsibly
I don't understand the argument. I think he's just mad he could lose his grift and his business.
I understand it. It means my cash back rewards for using credit card will go away. Congress needs to stay out of how companies run their business.
@@HansMcGruber You aren't getting any rewards. The card charges the business a fee that is much higher than the little % back you get, the business in turn raises all its prices by that amount. You are just getting a tiny bit back of the money the credit card company is taking from you in the first place. But in reality you are paying higher total costs.
Exactly this guy is trying to save his cc referral business.
@@HansMcGruber But it also means retailers can lower prices as well because their credit card fees are lower
@@KK-pm7ud Companies will not lower their prices. They will keep the extra money they save. They will not pass it on to the consumer.
What do you do when your Senator is the person who is creating the bill?
Corruption knows no bounds.
If no processing fee, how do Visa and Mastercard make money? Banks, retails, save a lot of money, consumers gain nothing.
Card companies complaining having to stop redistributing wealth from low income holders to high income holders. Good.
I do have Google ad's
The only reason to actually use any cards is benefit not debt
Just my opinion, but the world would be a better place without coupons, loyalty programs, pay per use premiums, and every point of sale "upsell" offer.
Sheep. Those things arn't even the same. Coupons benefit US and save US money. So do loyalties. The rest benefits THEM. Wake up!
@@eco-enjoyer "Sheep" #1 Royalty for loyalty is a scam, not unlike the harvesting of eyeball characterized internet chain mail scams of the 1990s. People need to be more wise to how they spread their information. Cheeky!
@@eco-enjoyerwhy would THEY offer coupons and loyalty programs if those didn’t benefit THEM?
@@adamtrotter4910 Ok, then you go shop at places that don't accept coupons and I'll use them at places that do to get the same stuff you are...cheaper. LOL. Every business and person does things that benefit them, lol. It's the point. It's your job to do what's best for you to benefit you.
Points guy worried his gravy train could run out.
Visa and Mastercard better up their lobby/bribe funding asap
😎I travel full time and love credit card rewards. However, my main source of financial freedom are stock investing and option trading.
As long as trading fees are low, I am ok.
flexa ‘bout to run this
I definitely get lured into spending more when I have a high reward credit card. Completely illogical, but very real.
So retail businesses is gonna notice they saved 2-3% on fees, but consumers may spend slightly as there are slightly less incentives to spend.
Exactly. Just talking about it makes me want to spend less.
I guess i just wouldn't use a credit card if it isn't saf what's the point of a card if there's no reward..back to cash
This certainly sounds good too, but I think its still worth considering more reliable options like traditional businesses such as cannafarm ltd, for example.
Here's a pointer (get it) .... if you need points to vacation
... you should not do it.
Cool video! Id like to add that there are other investment options in businesses like cannafarm ltd as well.
Instead of paying 3% on each transaction, put away the money in savings.
Wait this doesn't work because they charge it from retail businesses and they charge everyone higher prices.
Credit card fees are insane.
In addition people pay a lot of interest on credit cards.
This comment is spot on. Why isn't the host challenging Brian Kelly about the higher fees that we all pay as result of these points as well as the fraud protection? Consumers should do more to research whom they are doing business with and obviously prices will not go as high as they otherwise would. Brian, your arguments are so one sided and shallow!
SOFI is the future. The TSLA of banking
The credit card lobby is really strong, they try to make you fear losing points to be able to keep their duopoly
retail lobby is stronger especially when reading these retail lobbyist comments
Why would I, as a consumer, give up my points for some retail company? That 3% is already built into the cost of whatever product, you really think Walmart is going to lower prices by 3%? Give me a break. At least let me be incentivized to spend more.
I will give up points for real cost savings.
If the retailer decides who runs the transaction- they should have a explanation in how they would create the incentives to attract certain cards use. This guy repping up cards without that important info is just a smokescreen otherwise at least, at most misleading. However, inflation is robbery with extra steps. Taking away further credit card rewards should there be no fair market incentives to this story from retailers is another way to disenfranchise the middle class.
The real downsides of this bill vastly outweigh any speculatory benefits.
Didn’t the senator who spoke about this die yesterday?
Thank you for sharing your insights and recommendations. Its great to explore various investment options, especially well-known companies like Cannafarm Ltd that are gaining popularity. Adding different ventures to our portfolio can help reduce risks in
yes that point.. they are rolling out a digital currency so they will not want any competition
Free market vs monopoly cartel?
Where in the Constitution is the government granted the authority to do this??
Article I, Section 8, Clause 3
@@KYLE-zo4bm interpretations of the commerce clause have been grossly exaggerated for 100 years. It was never meant to regulate any and all commerce, but only to ensure no state treated another state unfairly as compared to other states. It has nothing to do with me purchasing a cup of coffee at my local coffee.
@@JasonWHoyt well thank god you know better than the supreme court you should call em up and tell them
@@KYLE-zo4bm todays make-up of the Supreme Court knows. They’re waiting.
Who let that guy speak
Is he saying that when I buy a $100 pair of shoes at a retail store the retail store is going to ask me if I want to pay an extra 3% or 1% depending on the network I use? Retailers have already loaded in the visa, mc and amex fees into the cost of the product. Cash is rarely used anymore. I understand that cc give perks based on their transaction fees (give back to the consumer) but this does not make sense.
Why is he so focused on points(perks) and not the security aspect. Thats why people are going to look at it like a rich people whining problem?
So, who is working for the corporations? The left or the right?
Sounds like shills for the credit card companies
Good. Credit card companies be damned.
Hurt? It would cut credit card usage. A huge win for the average American household. We got over 1,000,000,000,000 in credit card debt. Take away that reward carrot. It traps lower income and only helps upper middle class and the rich.
Talk about out of touch. It's moronic to say losing points and rewards hurts low income people because the amount you have to spend is so high. Gee, poor people don't get airline discounts??? Here's a flash, poor people aren't flying around, taking vacations.
This kinda sounds like a scare tactic from credit card companies.
Sounds like "those who have access to credit cards" (eg, richer than other people) are going to lose out to help the overall consumer.
Not at all. Prices will not go down as mentioned because the retailers will keep the difference, everyone will lose purchase protections and fraud protections, and we will all be worse off.
@@word42069 "we (all the wealthy people who have credit cards) will be worse off". People paying with cash will not be worse off. If what you are saying is true Retailers won't be forced to raise prices as fast, because they'll have more profit.
@@marksatterfield If you think retailers and corporations operate that way, I hate to burst your bubble. In fact, most are legally required (to shareholders) to make decisions that will maximize profit.
@@marksatterfield This will be a non-issue to people who pay cash but that is a straw-man argument… as people paying cash will not see prices lower nor will they see a lessening of inflationary pricing. So it will literally make no difference. Also, it’s super weird to conflate having a credit card to being wealthy…. it’s actually unsafe to use debit cards for all of your purchases explicitly BECAUSE they lack any decent purchase protection… it’s a direct link to your checking account.
I only make 32k a year and have a 720 credit score I built and have a few premium cards and they give me the advantage to have amazing vacations for a few hundred bucks being wealthy just makes it easier to get points and they get more cheap vacations a year then I do that's it
I honestly dont understand why youre discussing these dubious schemes. There are plenty of options like Cannafarm Ltd and similar ones that are fast and profitable.
This is not going to raise fees in the manner suggested. The current credit card "rewards" system only gives you back a tiny bit of the money they charge the retailer and they give way more perks and rewards to their wealthy clients. All it really does is take money from poors and people who dont pay on time and give it to the already wealthy while giving everyone else a tiny bit of chump change.
Just pay your bill on time?
@@StephenSatire i dont think you understood lol. It doesnt matter if you pay on time, your end cost is still higher. Even if you pay with cash and dont use a card, the card fees for the merchant is built into the item price so you still pay more.
Utrust fixes this.
This is an absolute biased segment. They even miss represent the 3% as though it’s paid by the consumer, it’s paid by the retailer. So not only is the retailer expected to pay a higher percentage, but he’s also supposed to pay for the perks of the credit card user? this segment does not consider whatsoever the little retail guy who has to pay out a big chunk of his income to the big credit card companies and processors. This is what this bill is all about, and this segment totally ignores that.
So that percentage in cost will be shaved off of prices for the consumer who now has fewer protections? Precisely, they will not…. hence this segment and Kelly’s point.
@@word42069 You obviously don't have a business to know what you are talking about. The price is the same if you pay cash or credit. Some businesses charge extra for using credit cards to cover the cost. Have you ever heard of a cash discount? This segment is all about the credit card servicers keeping their huge profits and making the businesses pay for credit cards rewards, which again, only higher earners get. The current system does not help the small business or the lower earner obviously.
If points and miles go away, then:
1) There will be less travel Karen chaos at the airport
2) Lower airfare demand
3) Lower airfare ticket prices
4) Faster security lines
5) Lower hotel rates etc.
We should definitely pass this law!
Orrr less flights due to not too many people traveling. Price will go up because at that point it's a luxury.
Seems selfish, the interview guest (Brian Kelly and his business) stands to lose from this legislation, which is why they're opposing it.
If this passes, the points guy will have less card points and card arbitrage content to write about >> less ads revenue and referral dollars from card issuers.
US lives on interchange island, most developed nations have capped interchange (and less extravagant card benefit schemes).
He wrong.. This give the people a choice. Which make it cheaper. Competition.
Points and miles have been absolutely useless for almost a Decade now unless you are wealthy. the programs have continuously gotten worse as these companies keep more profit.
i have 2 credit cards and have never cared about the stupid points because unless you're rich and spends tons of money it doesn't amount to a hill of beans
... click bait. Fear uncertainty and doubt. Yuck.
This guy clearly speaks for credit card companies! No mention of how much fees being paid by small business each month to cc companies on processing transactions.
This guy sounds like a credit card industry shill.
Probably because his entire job and income stream as The Points Guy will be significantly impacted.
Cryptocurrency is volatile. Diversifying your portfolio is a sensible strategy. For example, I have deposits on Binance where I engage in trading, also staking on Kraken, investing in companies like Cannafarm Ltd, and I also participate in liquidity pools
Or one could not worry about points and not have a credit card at all. That's one less bill that you have to deal with. And when you make purchases your purchasing with intention from a planned budget with cash you actually feel better because there's no excess charges hanging over your head in the form of interest payments.
Why not take advantage of credit card rewards and pay your bill off each month? You don’t pay interest, you get rewards back. You can budget the same way with a card as you do cash. You just have to keep track of it.
@@adamtrotter4910 that’s to intelligent for some people to quantify!
@@adamtrotter4910 that’s to intelligent for some people to quantify!
This guys business will go away. Talk about a vested interest!
This guy is a bullshitter. Consumers are paying the price for the profits of Visa, Mastercard, Amex etc. It's a system in grid-lock due to clever engineering of incentive systems. This change will benefit consumers. Fraud protection doesn't have to cost 3% on every transaction, and if you as a consumer don't pay the 3% directly, it's the retailer paying for it (which means they have to charge it back to consumers in some way).
dude is ftard, the merchant isn’t going to “choose” to risk fraud and not get paid…
This clown is wrong.. Govt is right to take the monoply away so that businesses don't have to pay 3.5% on every transaction to the credit card companies.. with more competition maybe that transaction fee goes down to 1.5% that's savings of 20K a year for every business that does 1 million in sales..
there are good examples of other countries where they've leapfrogged credit card exorbitant merchant fees and points. stuff is cheaper and payments are faster
Leave it to the Democrats to screw up a good thing.😮💨
This extra cost is eaten by the retailer and other none credit card users in the form of higher prices. So if you use cash or debit cards, you pay more for your food so “The Points Guy” can get his miles.
You really think they are "eating" that cost? Wake up, they've baked that into their prices, so you need to use a credit card to get that money back through rewards or cash back, otherwise, if you pay cash, you're a sucker who is subsidizing the credit cards users. Credit cards have raised the price of everything due to their transaction fees. The fix is to charge the fee to the customer who uses credit rather than cash. But I'm sure the CC lobby wouldn't stand for that...
@@omni875 I agree with you but I don’t agree with this jerk trying to rub cover for the credit card industry by bringing safety and stuff that isn’t true. I agree that when you get to the checkout and choose, cash then your total should drop by 3% and if you choose Credit Card then it should be that final price as to not shock the public. This way, if you want your rewards and stuff then you pay the fee and those who don’t care about rewards and pay in cash can get the claimed “savings” we hear from the merchants.
Obviously retail lobby bot.
Incredibly shady for my elected officials to be doing this. This is NOT what we elect them to do. The fee a retailer pays is the cost of doing business and is reflected in the prices of the items for sale. Now they want their cake and eat it too. Wonder how much retailers are paying our senators to pass this bill. It's an obvious bribe since there's zero reason to do this on behalf of the taxpayer.
Bidummynomics..I just luv it.
Imagine you are making 1% profit
And paying visa 4% every time that's USA
Due to Visa MasterCard and Amex USA is losing digital money race
Here in India even a small retailer with razor thin margin of 1% supports digital payments all because our own system charges zero to them
If your business is making 1% reducing swipe fees isn’t going to keep your business closing in a month
Bitcoin fixes this!
What about the 20% that they make you pay in interest to pay points. Lol this guy is a joke
Who made you pay interest? You only pay interest if you try to buy something and don't pay for it right away. That's a decision you make, not them.
Good, credit card rewards should end. They go to disproportionately sophisticated and high-income individuals and are paid for by lower-income consumers (their debt) and small businesses (transaction fees).
Of course that won't make this guy that runs a credit card points website happy, but it's best for the rest of us.
*THIS* was a problem? With all the other things wrong in the world??? I voted for President Biden in 2020 and sincerely - I'm proud of him. BUT....I'm tired of Nannyism from government too. This points thing is how many of us get to travel. IF this passes.......I promise I'll vote for the Cheeto, the Florida Governor, or whomever the other side puts up. (I bet it's Kemp or YoungKin) but yeah, this crap would make me vote for people I dont like. Senator Durbin? Find something else to do. Perhaps the Senate can examine the structural homelessness in California and New York for starters? And then the insolvency of your state of Illinois?
SMART MOVE, I KNEW YOU'D COME AROUND EVENTUALLY
Brian Kelly is so dishonest in how he is presenting this info.
This is such bad reporting. Brian Kelly is being paid by credit card companies and banks.
Points are not free!!
Credit card companies charge 3% transaction fees and reinvest 1-2% in points to make their customers spend more with their card. In addition they charge horrible high interest in case you don’t pay down the balance. So credit card companies and banks make money both ways.
Retailers increase their prices accounting that they actually make less than they charge due to the transaction fees but they don’t make money on internet.
How can CNBC allow such bad one sided reporting! Very disappointing!
This guy is trying one scare tactic after another. Fraud protection is paid for by the merchants, not the card company. If it's fraud, the retailer has to accept a chargeback. There is no cheap credit card network without fraud protection. Card companies charge merchants 3-5% of the transaction amount. Points are rarely worth more than 1%. Further, low income consumers don't get cards with good points. They get cards with fees. Wealthy consumers get cards with great points because credit card companies want those consumers because they spend more and are lower risk. But both pay more on their purchases because retailers have to price stuff assuming everyone is using a card with 5% fees. This is an excellent bill. All consumers should support it.
I dont know, dudes. I think crypto and all these ICOs are just a bubble. Well, crypto is good for transfers and so on, but I dont engage in trading and staking either. Its too risky. My friend recently lost $5000 there. I invest crypto in real business
Why does this senator still have a job? Could he not more clearly be for big businesses and not the people?
This guy sounds like a lobbyist
Seems like a lot of misinformation with zero push back
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