News

Credit, debit rewards head in opposite directions

February 16, 2012

A Bankrate.com study underscores the impact of the Durbin Amendment on the debit and credit card industry, said a news story this week at ibtimes.

The study of 50 cash-back credit cards offered by 19 large U.S. issuers found that credit card rewards programs are becoming increasingly generous, with banks paying more cash back and getting rid of annual fees and expiration dates.

Meanwhile, the availability of debit card rewards programs has declined by 30 percent over the past year. Greg McBride, a senior financial analyst for Bankrate.com, said this was largely due to the Durbin Amendment's restriction on the fee amounts that banks receive when a consumer swipes a debit card.

McBride said that debit card rewards will likely continue to decline, eventually to be replaced mostly by merchant rewards that offer cash back on purchases or redeemable points after a certain amount of spending.

For more information on this topic, visit our trends/statistics research center.