Otherwise, the rewards are paid pretty directly by the merchant. For example, Walmart became their own credit card processor, which let them cut prices a tiny bit (or get a tiny bit more money where they didn't cut prices). The margins of any individual party between the merchant and the backing bank are razor-thin, so removing even one layer of middle-men can significantly improve profit or allow those margins to be redirected into things like cash back. Merchant, terminal vendor, terminal network, card processor, card brand, issuing bank, backing bank. I've posted about this before, but the number of middle-men in a credit card transaction is astonishing, and they all want part of the money changing hands. He said he can't afford to pay for American Express customer's airline tickets. I spoke to one retailer and asked why they don't take American Express. You should be aware that the perks of "elite" cards are paid by someone - in particular, the retailer whose product you purchased with the card (maybe you if the price is hiked because of the cost of the plastic). Hopefully that will change as the service matures. I would like to make this my only card, but the cashback isn't there yet. just wish it would match the cash back % of some other cards. I remember seeing comments of people upset that they were not able to export their Apple Card data into Quicken and the like. This is good news for some folks here at AI.
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