Released: March 08, 2023

The dirty little secret of credit card rewards

Source: Chenzi Xu & Jeffrey Reppucci, N.Y.Times Opinion (Paid Registration)

Credit card perks for educated, usually urban professionals are being subsidized by people who have less. In other words, when you book a hotel room or enjoy entry to an airport lounge at no cost, poor consumers are ultimately footing the bill.

Credit card rewards are essentially a tax on less affluent consumers, who are much more likely to pay for their goods with cash, debit cards or standard credit products that accrue no such rewards.

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