why do credit card companies offer points ?

Dec 7, 2019 12 Comments

why do credit card companies offer points ?

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TOP 12 Comments
  • Amazon baconhill
    So people spend more to get more points and pay them that young apr $$
    Dec 7, 2019 0
  • Yahoo MM_
    You spend, they make money
    Dec 7, 2019 0
  • They charge the merchant a transaction fee. So the more you spend the more they make.
    Dec 7, 2019 0
  • First Republic fakeacct
    Because a lot of people overspend and can’t pay amount in full and they can charge 10-15+ in interest. They also offer points because they are able to buy the points cheaply from airlines and a lot of people don’t redeem their points too.
    Dec 7, 2019 0
  • Microsoft knsgdye
    Because saying “you get 25 cents for every $1000 you spend” is not going to make you spend more.
    Dec 7, 2019 1
    • That's not true. Read up on some behavioral economics. Free stuff, discounts, and cash back really does cause some mental gymnastics that cause people to spend.
      Dec 8, 2019
  • Netflix alphacoder
    And this is why conventional broad education is better than coding boot camps.
    Dec 7, 2019 0
  • Amazon az5
    Not all of them do. Some give flat cash back.
    Dec 7, 2019 1
    • JPMorgan Chase / Creative dotvector
      It’s the same game either way. It’s to lock you into recurring spending and interests fees if you don’t pay in full
      Dec 7, 2019
  • Optum UAYD21
    I guess as a bait for us to spend more, to ruin our habits. It makes them a lot of money.
    Dec 8, 2019 0
  • AT&T MsdR32
    It's basically a sale...
    Dec 7, 2019 0
  • Facebook whoad00d
    To entice you to use their card versus another.
    Dec 7, 2019 0

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