Who actually pays for your credit card rewards?

Here’s why you’re paying for credit card rewards — even if you use cash.

Shoppers 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.)

[Taikamuna]

Okay so every time I go to the store I'm paying for this guy's trips to South Africa

[diuxchy]

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.

[jonathan]

I do think it's a little dishonest to exclude the fact that "The Points Guy" doesn't earn his rewards from spending, but from referring people to sign up for these credit cards. They basically receive a referral bonus (in points or in cash) for each sign up through their site/promo.

This video makes it sound like he got all those trips just by spending, which is ridiculous.

[athrundead]

Now I know why Chinatown grocery shops be like cash only

[Bisquick]

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

[JusdoinstuF]

Studies show that if you use a credit card you are more likely to spend more money than you expected. Having the discipline to stick to a budget and pay off your credit card debt in FULL each month is the key.

[JunSian]

It is totally a prisoner dilemma problem. If you do not use a points card, you are paying for others' points and you lose benefits. If you and everyone use premium cards, then all stores have to increase their prices, and everyone has to pay more for products. Everyone loses.

[turnerwright]

"I won't get into the ethics, but I will maximize my part of it" is a really sucky justification for anything.

[ElectricToast]

I guess it's easier to blame the guy in the video than it is the credit card companies and the government. If that's your stance, nothing will change.

[MaJuV]

"I'm not going to go into the ethics of it."
Of course not, otherwise you wouldn't have ever used it; it's an unethical system. No wonder they ended it in Europe. I can only hope the rest of the world follows in capping this.

[RandallStephens]

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

[ridhiculously]

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

[lm]

The rich gets richer, the poor gets poorer.

[carpo]

Pay cash if you can. Especially when it's a small vendor or shop. It helps the local economy. Cc fees suck.

[subtlespaces]

"I know this isn't ethical, but I win, so I don't care" -points guy

[idontknowman]

Vox: makes 5 min vid
Vox again: we didn't have time to include...

[Rajmhta]

Brian depend on which country you are in... in Countries such as India/UAE.. if you pay Cash - one gets an instant Cash discount, equal to interchange fee.. I see the video is only from US perspective. As said, when in Rome, do as the Romans do.. when not in US.. ask for Cash Discount.

[jacobyboyer]

"I won't get into the ethics, but I will maximize my part of it"

Bruh, that's called being unethical.

[tparadox]

"My factory vents toxic chemicals from its stacks. Where do they go? I don't want to get into that, but I'm going to keep my factory at maximum production!"

[nelsonth]

Disappointed in the lack of depth of research and investigation, Vox, especially with that tease of credit tips in a separate, paid, video at the end.
You didn't seem to challenge anything this guy said, including his one facile tip of just getting your finances in order. Is it truly that easy for everyone? Can the poor in America really just afford to get multiple credit cards?