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Who actually pays for your credit card rewards?
Here’s why you’re paying for credit card rewards — even if you use cash.
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Shoppers love credit card rewards. Banks promise offers of cash back, bonus miles, and cash bonuses to get you to sign up and spend. In 2018, 92% of all credit card spending was made on a rewards card.
Some people, like Brian Kelly, a.k.a "The Points Guy," have even made a career our of maximizing these rewards. But who ends up actually paying for all these rewards? (Hint: it’s probably you.)
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