On: Jack Ma's Ant Group set for record $34B market deb...

[jjoonathan]

What? No. Cash back is a cut of the fees the CC company charges to the merchant.

[toomuchtodo → jjoonathan]

Where do you think those fees come from? You! Rebates are your own money you have to optimize to get back, and those who are less well off are usually the ones who are disproportionally impacted by the aggregate costs of reward cards (because they're paying with cash, debit cards, or other mechanisms where they don't receive a rebate).

Rewards for payments and unregulated interchange fees need to die. They are a financial transaction tax on everyone.

[jjoonathan → toomuchtodo]

Yes, exactly.

"Your reward points come from interest charged to poor people" is both gross (in that some people are placated by it) and incorrect.

[paulryanrogers → jjoonathan]

Merchants pass these fees on as higher prices. No such thing as a free lunch.

(Rewards cards similarly offer insignificant benefits or are paid for by increases elsewhere.)

[disgruntledphd2 → jjoonathan]

Which are paid for by increasing prices for cash buyers.

It's just another regressive tax on poor Americans, sadly.

[mdorazio → jjoonathan]

No, they are partially a cut of the fees the CC company charges. Show me proof that they're 100% from fees and I'll believe you. Otherwise a quick google search shows that you're not correct here.