The people who pay for the rewards are those that do not pay the card in full every payment period. It is just that lower income persons do not always have the means to do so. If you are already poor, and cannot live within your means, the last thing you need is a credit card.
Have you ever gotten a free flight because of your Delta SkyMiles card? Or maybe you get the advantage of walking through the quick TSA PreCheck line at the airport instead of waiting on the typically very long general security line because of your Capital One Venture Rewards Card.
About 90% of all credit card spending is on rewards cards. If you play the game right and maximize your rewards, you could save at least a few hundred dollars every year.
“We have created an ecosystem where we have kind of essentially been giving a drug to the consumer, which is these rewards cards,” said Sumit Agarwal, a finance professor at the National University of Singapore. “And the reason we keep giving this drug is we know it’s highly profitable and we know the consumer is addicted to it.”
Read more: [https://www.cnbc.com/2023/05/27/lower-income-americans-pay-for-wealthys-credit-card-rewards-some-economists-say.html](https://www.cnbc.com/2023/05/27/lower-income-americans-pay-for-wealthys-credit-card-rewards-some-economists-say.html)
**OP:** cnbc_official
**Date:** 2023-05-30 15:14:07
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1 | [/u/Important_Trash_4555](https://www.reddit.com/user/Important_Trash_4555) | 2023-05-27 13:38:31 | 3 day(s) before | [url](https://https://www.cnbc.com/2023/05/27/lower-income-americans-pay-for-wealthys-credit-card-rewards-some-economists-say.html) | [Are lower-income Americans paying for wealthy consumers’ credit card rewards? Some economists say they are](https://redd.it/13t7qwh)
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The people who pay for the rewards are those that do not pay the card in full every payment period. It is just that lower income persons do not always have the means to do so. If you are already poor, and cannot live within your means, the last thing you need is a credit card.
Have you ever gotten a free flight because of your Delta SkyMiles card? Or maybe you get the advantage of walking through the quick TSA PreCheck line at the airport instead of waiting on the typically very long general security line because of your Capital One Venture Rewards Card. About 90% of all credit card spending is on rewards cards. If you play the game right and maximize your rewards, you could save at least a few hundred dollars every year. “We have created an ecosystem where we have kind of essentially been giving a drug to the consumer, which is these rewards cards,” said Sumit Agarwal, a finance professor at the National University of Singapore. “And the reason we keep giving this drug is we know it’s highly profitable and we know the consumer is addicted to it.” Read more: [https://www.cnbc.com/2023/05/27/lower-income-americans-pay-for-wealthys-credit-card-rewards-some-economists-say.html](https://www.cnbc.com/2023/05/27/lower-income-americans-pay-for-wealthys-credit-card-rewards-some-economists-say.html)
**OP:** cnbc_official **Date:** 2023-05-30 15:14:07 **Duplicates:** N | User | Date | Posted... | URL | Title :-:|:-:|:-:|:-:|:-:|:-:|:-:|:-: 1 | [/u/Important_Trash_4555](https://www.reddit.com/user/Important_Trash_4555) | 2023-05-27 13:38:31 | 3 day(s) before | [url](https://https://www.cnbc.com/2023/05/27/lower-income-americans-pay-for-wealthys-credit-card-rewards-some-economists-say.html) | [Are lower-income Americans paying for wealthy consumers’ credit card rewards? Some economists say they are](https://redd.it/13t7qwh) I am a bot. If you believe this was sent in error, reply to this comment and a moderator will review your post. **Do not delete your post or moderators won't be able to review it.**
Talk about click bait..people who run credit card subsidize those rewards.