Just as debit card reforms harmed consumers, so too will credit card reforms. The biggest casualty of this new legislation will be co-branded credit cards, more commonly known as rewards credit cards, which will cease to exist. For the sake of consumers and merchants, Congress must put a stop to such hazardous proposals as the unintended consequences […]
rewards
Controlling Breakage
Breakage is a term merchants use to describe the unredeemed value that consumers hold in gift cards, store credits, transit fare cards, airline miles and other “rewards” schemes. In 2009, $87 billion worth of gift cards was purchased. Also in 2009, there was an accumulated $30 billion of unredeemed gift cards in consumer’s hands. The […]