A Look at Rewards-based Credit Cards
Damon Darlin reports for the New York Times on the flurry of rewards-based credit cards now being offered.
Consumers with cash-reward cards stop using other cards. Industry consultants estimate that cardholders put about 75 percent of their charges on a single reward card, so the benefits to the card issuer are enormous. "We don't want or expect them to spend more, we just want them spending with our card," said Amer Sajed, senior vice president for Citibank's cash-reward business. But UBS Securities estimates that while the annual spending average for a regular Visa card is about $5,200 a year, it jumps to $26,100 for a reward card.
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