While credit card rewards are constantly booming and becoming seemingly more and more innovative, there are certain limitations occurring.
Merchants and business owners are the ones that fund interchange fees through their stores. Chunks of these fees are passed along to card issuers, and banks are also able to collect on them.
If people come up short on interchange fees, then they still have to pay the same rate. Rewards are mostly funded by these interchange fees. Therefore, these rewards may be the first to go.
Image via Fund&Grow.
