Who actually pays for your credit card rewards?

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  • Published on:  Friday, February 15, 2019
  • Here’s why you’re paying for credit card rewards — even if you use cash.Help us make more ambitious videos by joining the Vox Video Lab. It gets you exclusive perks, like livestream Q&As with all the Vox creators, a badge that levels up over time, and video extras bringing you closer to our work! Learn more at http://bit.ly/video-labShoppers love credit card rewards. Banks promise offers of cash back, bonus miles, and cash bonuses to get you to sign up and spend. In 2018, 92% of all credit card spending was made on a rewards card.Some people, like Brian Kelly, a.k.a "The Points Guy," have even made a career our of maximizing these rewards. But who ends up actually paying for all these rewards? (Hint: it’s probably you.)Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out http://www.vox.com.Watch our full video catalog: http://goo.gl/IZONyEFollow Vox on Facebook: http://goo.gl/U2g06oOr Twitter: http://goo.gl/XFrZ5H
  • Source: https://youtu.be/ySH5SudRwak
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  • Jesse Kos

     4 months ago

    The moral of this story: 'People with lower incomes pay for your credit card rewards, so use a rewards card.' I honestly don't know how to react.

  • Lewis Geer

     1 months ago

    @Ahmed H Do you think a poor person would hold back from using the welfare options they have available to them because they feel like its exploiting those who make more money than them? I dont think they would let that stop them. I wouldnt if i was in such a position. My taxes help pay for such help for the poor and i dont mind that because i may someday need that available help. If they pay a measly 1-2% more for a gallon of milk that could ultimately help pay me back for paying more in taxes then th...

  • Ahmed H

     1 months ago

    @Lewis Geer Even if the poor are only paying 1-2% more without being rewarded back as a result of being part of the system, don't you find this in any way... kinda exploitative?

  • Bisquick

     4 months ago

    So the concluding answer according to this Brian guy is: "Who cares? As long as it's not me!" What a nuanced take...

  • Dennis Vu

     1 months ago

    Sums up the right wing party: "Who cares? As long as it's not me!"

  • Ricco Tiong

     2 months ago

    8pp? Inhospitable 88

  • DankDungeon

     4 months ago

    I pay for them, thank me later

  • Tracy Green

     1 months ago

    NO UPFRONT PAYMENT!! Just got $45000 Secure Wire Transfer and Increased Credit Score (820) and Credit Limit. Exclusively for U.S.A, Canada Bank and Credit card. Contact licensed bank I.T expert securely at [email protected] Whatsapp: +1(201)201-1042 IG: @instantsolutions4We all deserve to be happy on our own terms!

  • iReviewer

     1 months ago

    Technically I pay for them too so you're not that special

  • Akriti Singh

     4 months ago

    I'd spend more to get rewards...if I had that much money for it

  • James Herr

     1 months ago

    pp rr what?

  • Stephen Csoma

     3 months ago

    @Danie Spry he gets a lot of points from referrals and welcome bonuses. Plus he pays for all his business stuff on cards so he can rack up the points. But if you hit a certain amount in bonus points you gotta file a 1099 now.

  • Gabriel

     4 months ago

    Hate this guy... "Yes, you paid for my 5 trips to Ghana. Thanks, peasants! Low income losers don't have access to credit and I'm not gonna get into that today. Greetings from Dubai!"

  • James Horton

     25 days ago

    Gabriel he sucks. He’s a complete shill for banks. Better points ppl like ask sebby tell you how to actually optimize points.

  • OllieWille

     4 months ago

    USA really is a corporatist hellhole

  • Daniel R Goldman

     29 days ago

    Hes an arab lol

  • Doggo With A Bloggo

     2 months ago

    OllieWille Breaking news every country besides dictatorships and communists are the same even Europe

  • Randall Stephens

     4 months ago

    "I won't get into the ethics but I will maximize my part of it" <- this attitude is what's wrong with the world

  • TrollBuster

     15 days ago

    That attitude is what's wrong with the U.S., not the whole world.

  • Jacob Roan

     24 days ago

    Like the man said, if you use cash or debit you’re effectively paying for the points others are receiving. The ethical debate really should be directed at the banks who provide a financial disadvantage to people with lower credit scores. The flip side of this is that businesses have the choice to refuse credit card transactions but risk reducing business because people like getting there points.

  • Rich Marceau

     4 months ago

    .Short answer: everyoneLonger answer: the merchants, paying processing fees, who pass that along as what amounts to a hidden tax..I'm also pretty sure that the agreements that the merchants have with card processors forbid them from offering a discount for cash payments. I'm not sure how that is even remotely ethical.

  • James Horton

     25 days ago

    Rich Marceau you have no idea what you are talking about.

  • dom1abc1mbc

     1 months ago

    merchants dont have to accept mastercard and visa, but those who do have more traffic because most people arent cash strapped retards

  • Shawouin

     4 months ago

    So that guy is a BIG part of the problem...

  • Takata Miyagawa

     3 months ago

    That guy isn't the problem. If anything, he's part of the solution if he's so upfront about how much benefit you can get from using a credit card, and who is paying for that benefit.You've got to hand it to the banks, charging an interchange fee, which the merchants are not fully equipped to pass on to only the customers incurring it, so they pass it on to all their customers, even the ones paying in cash. (Unless the merchant can actually calculate an appropriate credit card surcharge for every custo...

  • HD93

     4 months ago

    @campkira Not if you have 10x the money you spend sitting in an account and use autopay ...3-5% on every spending is no joke.

  • Luqman Huqqim

     4 months ago

    The rich gets richer, the poor gets poorer.

  • Jacob Greenstone

     1 months ago

    Most millionaires don't use credit cards. If you're too poor to qualify for a credit card, you have no business using one. CC companies want you to carry a balance if you can and the debt will just keep you poor. If you use a credit card with the mantra of maximizing rewards, you are probably wasting money. You get more money for nothing by investing instead.

  • M McTavish

     2 months ago

    No. The rich get richer and the poor get richer slower