Microsofteggwhites

why do credit card companies offer points ?

why do credit card companies offer points ?

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Yahoo MM_ Dec 7, 2019

You spend, they make money

Amazon baconhill Dec 7, 2019

So people spend more to get more points and pay them that young apr $$

New
m349830 Dec 7, 2019

They charge the merchant a transaction fee. So the more you spend the more they make.

Facebook whoad00d Dec 7, 2019

To entice you to use their card versus another.

Amazon az5 Dec 7, 2019

Not all of them do. Some give flat cash back.

JPMorgan Chase dotvector Dec 7, 2019

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

Microsoft knsgdye Dec 7, 2019

Because saying “you get 25 cents for every $1000 you spend” is not going to make you spend more.

New
m349830 Dec 8, 2019

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.

First Republic fakeacct Dec 7, 2019

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.

Netflix alphacoder Dec 7, 2019

And this is why conventional broad education is better than coding boot camps.

AT&T MsdR32 Dec 8, 2019

It's basically a sale...

Optum UAYD21 Dec 8, 2019

I guess as a bait for us to spend more, to ruin our habits. It makes them a lot of money.