The Credit-Card Rule That Powers Rewards Cards Just Got Broken \ stacker news ~econ

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The Credit-Card Rule That Powers Rewards Cards Just Got Broken www.wsj.com/finance/visa-mastercard-reach-settlement-with-merchants-to-lower-fees-c5fde9b7

392 sats \ 5 comments \ @zuspotirko 14h econ

Premium credit-card users are in for a big surprise: Their JPMorgan Chase Sapphire Reserve, and many other rewards cards, could soon be rejected by merchants.

No longer would merchants have to “honor all cards,” instead they can reject credit cards that charge merchants bigger fees for each transaction, a concession Visa, Mastercard and banks have balked at for ages

Looking forward to chaos at the Walmarts :)

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94 sats \ 1 reply \ @SimpleStacker 13h

Do the premium cards charge bigger fees?

If they do, it's likely because the retailers know that the users of those cards are bigger buyers.

Not obvious they'll be so quick to pull the plug on those customers' cards

30 sats \ 0 replies \ @nkmg1c_ventures 12h

I recall reading that some companies which offer elite cards actually don't charge but they have minimum usage / balance criteria. The same companies' lower-tier cards without strong rewards programs help bankroll the elite cards. I don't recall the company name(s) though.