Remember: there is no such thing as a free lunch. If they're rewarding you with ... | Hacker News

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		lenerdenator on April 4, 2024 \| parent \| context \| favorite \| on: Anatomy of a credit card rewards program Remember: there is no such thing as a free lunch. If they're rewarding you with something, either you or someone else is paying for it. Someone else, in this case, means another cardholder. Maybe the merchant the rewards program is through is counting on you to spend on something you otherwise wouldn't. Sure as hell isn't the bank offering the card. The credit-ification of everyday purchases in the United States since the 1980s has been a disaster for the average American's financial health.

spywaregorilla on April 4, 2024 [–]

What do you mean another cardholder? It's the vendors paying the credit card tax.

lenerdenator on April 4, 2024 | [–]

And where does the vendor get their money?

spywaregorilla on April 6, 2024 | | [–]

While the answer is technically cardholders that not mean that the vendor is not eating the loss

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