« Is Greed Good? The Professor vs. The Senator | Main | Mortgages at the Dem's Debate »

Credit Card Rewards Down Under

posted by Adam Levitin

The Sydney Morning Herald (Australia) was kind enough to feature my article about the social costs of credit card merchant restraints. (Sorry for the shameless self-plug...)

It's worth noting that when the Reserve Bank of Australia forced credit card networks to lower interchange rates and allow merchants to surcharge, the card networks had to cut back on their rewards programs (which are funded from merchant fees). That reduces the incentive to use cards simply for transacting, which means that fewer Australians are likely to end up paying interest and fees because of overestimating the likelihood that they'll make their card payments on time (because of everything from carelessness to changed financial circumstances).

Comments

The comments to this entry are closed.

Contributors

Current Guests

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless ([email protected]) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF