At a time when working families are struggling with higher prices, a recent study from the Electronic Payments Coalition (EPC) highlights how credit card rewards can serve as a “lifeline” to working families. The report notes that earned rewards are equivalent to a 17-cents-a-gallon discount at the gas pump, and that cardholders with an annual income of less than $60,000 redeem rewards at rates consistent with upper-income cardholders.
Given EPC’s opposition to legislative efforts to effectively cap credit card fees, there is some potential inherent bias in the analysis. But at the same time, the results are noteworthy and suggest that policymakers should take a much closer look at whether or not extending price caps to credit card interchange fees would leave working families better or worse off.
You can out more about the EPC findings here.
Listen to a December 2023 episode on the New Liberal Podcast, “Are your points in danger?” featuring Brian Kelly, The Points Guy.
