Who Actually Pays For Credit Card Rewards?

Video quality	The size	Download

Information Who Actually Pays For Credit Card Rewards?

Title	:	Who Actually Pays For Credit Card Rewards?
Lasting	:	17.50
Date of publication	:
Views	:	498 rb

Banks offer cards to make money, not charity Not only they charge fees and interests to 'subsidize' the responsible users, but also they need to cover their risks if someone fails to pay their debt What can be done from the legislature is to regulate banks to include a warning message to educate users when they open a new account Just like the warning printed on cigarette boxes
Comment from : Tony Luo

The best thing you can do it’s having just ONE credit card
Comment from : Rusty_MU87

Oh Americans and Credit… you should call it Cremarica
Comment from : Mark Spark

any interest is evil
Comment from : The Folan

Don’t get a credit card No one ever got wealthy using a credit card
Comment from : Travis Elrod

They’re going to create communism by snuffling out any competitive advantage the average person has That way there will be a clear caste, the mega rich and the average peasant
Comment from : An Individual

Wow, the Capital One representative looks super uncomfortable, maybe because he realizes he's spouting BS
Comment from : Jason

I noticed the Freedom 5 rewards in quarters is align with prices increases on the merchants who a part of that rewards For example if Freedom is giving 5 reward on Walmart the prices at Walmart are 8 more to cover the 5 reward So I am not really a rewards I have stopped playing the reward game I just buy what I need and have no debt
Comment from : Jose Aguirre

0:00: 💳 Rewards cards have created an ecosystem where consumers are addicted to the perks and benefits, despite the fact that they are borrowing money and paying interest br3:40: ! Merchants pass on the cost of accepting cards to consumers, resulting in higher prices for all, including those who don't have credit cards br7:11: 💳 Low-income card holders have higher delinquencies and debt-to-income ratio, while rewards cards are more beneficial for super-prime card holders br10:49: 💰 Capital One Bank's credit card business is highly profitable, primarily funded by interchange fee revenue, annual fees, and co-brand relationships br14:11: 💳 Financial literacy is important, but banks also play a role in enticing consumers to spend with credit cards brRecap by Tammy AI
Comment from : Eric

workers get mad when they dont get paid for working, why shouldnt credit card companies get what you agreed to pay them after they borrow you money? "americans have a lot of debt' the narrator says as though its not americans faultwhy cant they live within their means, or be content more like in europe where the household debt it less the culture of blame others for your decisions in america is childish
Comment from : david d

I’m not a social person and I don’t do well with moderation I’m sticking with debit cards and cash
Comment from : defiantlypink I

The rewards are partly subsidized by the US Treasury The free airline flights, hotel stays, gifts and other material perks earned as rewards are considered taxable income by the IRS The value of rewards redeemed is supposed to be reported on the annual tax return, yet many people conveniently forget to do this They are committing tax fraud, yet the IRS generally ignores this In effect, the IRS is condoning tax fraud for the benefit of the credit card companies and the wealthy high spenders who make significant net profit on credit card rewards value received annually minus fees paid
Comment from : Cutty Sark

6:29 Wrong! The rich carries a TON of debts, but they are good debts Debts that are used on investments that will generate more income in the future Poor people carry bad debts become sometimes they have no choice
Comment from : marryson123

Just dont spend because you want to get the reward use your credit card to spend on what you would have to spend anyways and accumulate the reward
Comment from : marryson123

Just use the debit card, why you need a credit car? To spend more than you can afford? It's debt, it makes no sense
Comment from : Gabriel Acosta

With my wife and two adult daughters, we accumulate about 500,000 frequent flier miles each year, leading to tons of free travel
Comment from : Inigo

Most of the high end cards do not have foreign tx fee
Comment from : Pallav Desai

Not everyone should or can have a credit card and use it responsibly I have 0 debt, paid off house, etc I choose not to play the credit card game with banks that spend millions studying my habits to get me to use their products
Comment from : M

Only Spend By Credit Card, the Money which you already have in your Bank account Dont forget to take out that money and pay at the End of Spending Month and the Amount of rewards at End of the Year will Surprise you but people are not that Honest
Comment from : KHIZARXXCOOL

She said that Period
Comment from : Obed Esquivel-Pickett

Education is the main way to solve the issue You cannot take away the liberty of the poor and the uneducated to make bad decisions without having a tyranny
Comment from : Zin Tun

Great interview Thanks!
Comment from : Joleo Dianala

Financial literacy is an issue, and it would be great if it was taught in schools, but the information is out there I've read a number of books Just borrow a book from the library!!!
Comment from : Karen Session

I pay off my credit card balance every month Cards with rewards should be great for me When I tried using these cards for various monthly bills, I found that a lot of companies did not want to accept credit cards for payment Contractors and other small business owners are even less likely to accept them
Comment from : Lyndas Locs

There are way more poor people than rich people That's what is profitable
Comment from : Omegaman 1

I, for one, appreciate all those unsavvy credit card users racking up the interest, as my rewards points are just about to buy me a new dishwasher
Comment from : Robert R

It's sad that the people that need to hear this will never see it
Comment from : Vvv vvv

What I'm learning is economics need to be taught in every high school nationwide with a high emphasis on personal finances I have 10k on my Amex card and 8k on my Chase Freedom But I do not have 10K in the bank Use them like your debit card bc all the issuer wants to see is that you are capable of paying it back on time and in full They want you to not know this bc they make money on fees It is important for everyone to know how to use their credit cards bc no there's no perks or reawards if you're in ridiculous debt
Comment from : Alex Valdivia

Next time I get a free perk on my rewards card I’ll thank the gardener And thanks Consuela!
Comment from : Luis Peña

I am STILL surprised that a lot of Americans think credit cards are "FREE MONEY" Your credit limit doesn't mean how much you can freely spend AND NOT PAY BACK ON TIME But these card companies (much like mortgage companies) prey on this type of behavior, giving people houses who can't afford a house, getting folks credit cards with 0 APR for 15 months so that at the end they're spending like mad when they don't have the money to cover it in the end People refuse to believe that they're broke, so credit cards and loans give people the illusion they aren't as broke as they think they are If people started paying cash for that spicy pumpkin vanilla latte or that shopping spree they had at the mall, they would realize these are things they don't need and it's eating away at their income
Comment from : M j G

The merchants pay credit card companies 6 of the sale price So I'm paying the 6 and getting back 2 in cash rewards It is better than nothing
Comment from : owleyes 11

They’re talking about the credit card companies educating people Our school systems should be educating people on finances And that stuff doesn’t happen because they want to keep you stupid Stupid and in debt with credit card homes and cars that you can afford That’s capitalism in America!
Comment from : Chris H

Excellent topic👍
Comment from : rahul vanjarapu

You increase the bank’s liquidity by not using their limited cash reserves, so they reward you
Comment from : AYVYN

I don't get cards that have an annual fee and I only spend money on my credit card if I have the money in the bank People who carry balances only have themselves to blame We put everything on credit and reap the benefits My wife and I aren't high earners Theres no reason anyone can't be financially educated Youtube is full of financial education and you can watch them on the bus to your second job No excuses
Comment from : Raegoul

credit cards are stupid!
Comment from : Master Shake

STOP blaming the banks for the irresponsiblity of consumers! Only spend what you have If you have little, change your lifestyle or find ways to make more $ Nobody "deserves" anything Sorry, but anyone using credit as income is a fool
Comment from : E Squared

The goal for banks has never been, and never should be "equality" They are in business to make a profit Customers which pose a higher risk should pay higher fees & interest That's just ansad fact of life Any other model is fantacy land
Comment from : E Squared

Dave Ramsey always says "I never met a millionaire who says'I don't know what i would have ever done had it not been for my points reward cards'
Comment from : Willy Joe Rockhead

The people that say pay off your cc balance each month don't realize the cc companies 'hate you' and will severely lower your rewards and also it doesn't help your credit
Comment from : Steven G

As I see it, the issue has nothing to do with the rich exploiting the poor, as this documentary seems to be suggesting The issue has more to do with the average American’s inability to sacrifice, go without, and live within their means My points card gives me free hotel and resort stays, and I use my points card ba lot/b in order to get those points But I never put money on that card I can’t pay for in full that very day In fact, I pay off every transaction the day after it posts, so I never carry a balance If you know how to leverage debt wisely, it can be beneficial When you don’t know how to be wise, bYOU/b will be driving yourself into debt It’s not the credit card company’s fault It’s byours/b
Comment from : Dustin T Seloover

That's kind of funny that I started putting money into a high-yield savings account last year, to get interest working for me I Bask (hint, hint) in the increase in interest rates Lately, I was Chased (hint, hint) by my bank with a credit card offer My credit would be considered not so good and I have no credit cards, just a debit card I refused to sell my wallet to the bank (sell my soul to the Devil) and turned down those offers
Comment from : Shawn Begay

Took me this entire year to pay off my credit card debt Paid down $9k and now I'm in a $7k checking surplus with a negative credit balance (aka the credit cards owe me money) I used my high score to get better rewards cards and i milk them for every cent of rewards and have almost every bill attached to them brbrIt was the most difficult thing I've ever done; watching huge chunks of money fly away every couple weeks after getting paid I will never carry a balance again
Comment from : Cam James

So wait, you want to take from the rich and give it to the poor, because the poor people are irresponsible financially? Here it is, the leftist communist agenda
Comment from : TheFantasticFreak

as a card merchant i charge a for using a credit card, many people have no idea it cost the merchant when they use a cridit vs debit card, if they want to pay extra that's fine with me, i'm not gonna pay service charges because they don't have the money
Comment from : f r e e b i r d

Good non-biased reporting I am amazed
Comment from : robert luttrell

This is a user error I have about 10 of these, pay over 2K in annual fees, but they’re all paid before the due date NEVER CARRY A BALANCE!
Comment from : Ricardo x El Mundo

I like how none of these experts are saying that people with low credit scores might just be bad with money Possibly a majority of people with bad scores are
Comment from : Ksgamer103

1:57: 💳 Credit card rewards programs are highly profitable for banks, but can lead to debt and financial challenges for consumers br3:03: 💳 Low-income households are more likely to carry credit card debt and have higher APRs, while interchange fees result in higher prices for consumers br6:08: 💳 Credit card rewards incentivize subprime consumers to overspend and accumulate debt, widening existing disparities br9:20: 💳 The study claims that customers who carry credit card balances and pay interest are cross subsidizing the rewards programs, but Capital One disputes this and states that their rewards products are independently profitable br13:01: 💳 The use of credit cards can be beneficial or risky, and some Americans use them for purchasing power rather than rewards br15:10: 🔍 Legislation and regulations have been proposed to address the inequality in the American payment system, but opposition and lack of hope for voluntary action remain brRecap by Tammy AI
Comment from : Chris Lee

Can you REALLY blame the companies when a poor guy wants to spend money that he does not have ? If you can't afford why buy ? Why even use credit card ?
Comment from : Valkyrie Z

The narrative of this video is so ridiculous Taking responsibility away from individuals that are unable or unwilling to manage their finances brBe aware of what you can afford and be fiscally responsible All information you need to manage your finances responsibly are available online and for free
Comment from : Ma Rek

If you are "low" income you don't need a credit card you need a "higher" income A credit card is not an extra paycheck it's a convenience service for not having to carry around cash everywhere you go
Comment from : B L

That the problem now debt what play rightand score a drama
Comment from : Florentino sebastian jr Jhun

Rewards convert the economy into a payment card one over cash; banks are making way more in interchange fees -- so much so that they can easily give away 1-5 in rewards They certainly did their number crunch and have come ahead Yes, it's somewhat irresponsible towards those in poverty and increases the imbalance of wealthy Sad but as always, folks need to educate themselves
Comment from : Delta Sierra 426

This is so dumb, the consumers have all the power they just don’t bother to educate themselves on how to use it 15 minutes on YouTube could solve that problem
Comment from : caleb

if you still want to get rewards you don't even need a credit card at all the Baskbank will give you the rewards for each $ dollar you have in their savings account
Comment from : Dixter

Chasing credit card rewards is the reason Americans have over 1,000,000,000 dollars in credit card debt Shameful!!!
Comment from : PGPPE

You can't help people who are willing to pay feesbrI lend mortgage money to a couple They are late paying their monthly payment almost every monthbrSince they are late, they incur $50 late fee brIf they would save their money ahead of time so they could pay their monthly payment on time, they would have saved that $50 late fee Yet, they continue to be late almost every month The late fee of $50 doesn't spur them any incentive to pay on time even though they do make their monthly payment
Comment from : P Wu

0:00 Introbr1:49 The Business of Credit Cardsbr4:00 How Americans Spend
Comment from : Discovery and Change

The biggest thing I think is educate kids in high school on how to use credit responsibly
Comment from : Bryan Herber

So the bottom line is Credit Cards are RACIST 🤣
Comment from : Señor F

Getting into debt and getting out of debt is 80 Behavior 20 head knowledge
Comment from : El Chapo Jr

You really don’t need credit to buy a house you can do manually underwriting
Comment from : El Chapo Jr

The biggest and main idea in this segment is have a plan each month budget your expense and think about every dollar you have has a purpose that’s how you get out of debt … no one cares what kind of car you drive or clothes you wear stop impressing people who you don’t really for
Comment from : El Chapo Jr

The Capital One representative a such a liar seriously snake in the grass 🐍
Comment from : El Chapo Jr

Dave Ramsey all over this seriously if you want to get out of debt look up Dave Ramsey
Comment from : El Chapo Jr

Credit cards with rewards are a scam you would need to pay more to get little bit of rewards in the long run it doesn’t make any sense ask any millionaires out there and none are going to tell you they got rich off credit card rewards or got Rich off debt … Debt is slave to the lender
Comment from : El Chapo Jr

Whoever leave a balance on a cc month over month is financially illiterate
Comment from : Jon

Why must society always be working to "achieve greater equality?"
Comment from : Doggieman1111

The narrator sounds like she's fresh out of high school
Comment from : Doggieman1111

Credit card users are usually status-seekers who care immensely what other people think of them
Comment from : Doggieman1111

Funneling wealth to the top, the story of America Just like every other industry, the credit card company takes from the lower class and gives to the wealthy
Comment from : Sean P

I miss the days APR was only 49 to 8 18-29 is a rip off Everytime was bail out banks, they keep finding new ways to rip us off
Comment from : Angel H

3 simple words, "It's a scam"
Comment from : Angel H

Nice analysis
Comment from : Ashwin Shinobi

I believe those rewards com from data the ours banks sell to companies its suspicious that as soon as you buy something advertising from that product starts to appear in your social media
Comment from : andrew wastien

The idea that poor users are subsidizing the rich is just absurd Why would a credit card company give revenue from poor customers to the rich ones, when it can simply pocket the windfall? CC companies have to compete for each market segment If they couldn't make money in a given market segment they would exit it, not throw away profits from other segments
Comment from : CaptSorghum

I am one if those who make out I’m supposed to feel bad for those who can’t manage their credit? SorrybrLet’s keep giving our hard earned money to those who don’t take care of their lives!!!
Comment from : Lauri Johnson

CC companies don’t sell to the responsible, otherwise they wouldn’t have a businessbrbrBut in the end it’s the person that gets the loan responsible for whatever happens
Comment from : Cesar

If small businesses want me to use debit cards instead I'd happily oblige, they just need to advertise the percent savings more, of simply refuse CCs Otherwise I will be operating under "credit card processing fees" recovery mode and follow the ludicrous points system to maximize my return For many transactions, CCs do not add value overall if debit cards could charge lower fees
Comment from : TH

this is so stupid poor people have been racking up credit card debt long before rewards cards became a product
Comment from : trinydex

How credit card companies make money without actually providing a service or having skill still amazes me
Comment from : Mzsierra2u

Debts create wealth, I recently bought a van for my business that extra cargo space is paying for itself and providing me revenue and the same apply to averything Only the debts that create revenue are good debts
Comment from : david rodriguez

the hard earn master card from the husband clears the family{wife account gets clear} the joint account of marriage
Comment from : Kin To

“Free”, “Rewards”, “win” and so on…we love falling for these traps There’s no free lunch (or anything)
Comment from : Pedro Figueiredo

I absolutely do not believe a word that is coming out of that credit card company representative Dude needs to stop pushing a product that’s destroying people
Comment from : Tim Smith

I was $800 away from debt free and I took my eye off the prize Now I’m digging out of the hole to the tune of $40,000 and that’s only 18 months later These things are incredibly dangerous brbrWe absolutely need to be more careful
Comment from : Tim Smith

Cant believe i didnt get a credit card in my 20s ugh
Comment from : Techn0way

There is an incredible bias against Credit Card companies in this video They place the blame on the credit card companies when really the blame should be on the consumer At the end of the day, it's on the consumer if they spend more than they have and have to carry debt Of course lower FICO credit score users are more likely to carry debt Their carrying debt is why their FICO score is low If they paid their balance in full every month and didn't carry debt, their FICO score would raise The video tries to equate poor people to lower FICO score but that's not true at all If used correctly, these credit cards will raise your credit score and only benefit you brbrBy using a credit card correctly, you get purchase protection, rewards, and a boost to your credit score There's little reason to not use a credit card for the majority of purchases
Comment from : aspheN

Whether it's a credit card or a debit card, YOU'RE paying for it Businesses, especially small businesses, can't absorb thousands of dollars in card fees every month This means prices go up
Comment from : Nathan Brady