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Old 02-27-2023, 05:45 PM   #8 (permalink)
AKA - Jason
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Join Date: May 2009
Location: PDX
Posts: 3,184

Adventure Seeker - '04 Chevy Astro - Campervan
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Originally Posted by freebeard View Post
What I fail to understand is where the points and bonuses come from. Is it some variation on a Ponzi scheme, sustained by penalizing people who don't know how to play the game.
Rewards come from swipe fees. Every time a credit card is used the merchant pays the credit card company. Visa, Mastercard and Discover tend to charge 1.5 to 2.5% depending on the card. AMEX charges 2.5 - 3.5% which is why many merchants (especially small ones) don't accept AMEX

Banks buy airline miles or hotel points in bulk at a discount and then hand them out as rewards.

In general if you pay cash for something you are paying 1 to 2% more than someone that paid with a card and got the reward.

Originally Posted by freebeard View Post
So you can appreciate the peace of mind I've enjoyed all these years?
Not really. I set all my cards to autopay so I know I will never miss a payment. Zero stress. Traveling for free also is quite the stress reliever.
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