Several Founders, Co-Founders, CXO Bankers, CXO Fintech professional & people who participated in the discussions:
- Mr Vikas Pahwa, Vice President Transaction Banking, Citi
- Mr Vibhor Mundhada, Vice President , Head of Merchant Acquiring, Strategic Alliances & Digital – Wallets & Initiatives at Mashreq Bank
- Mr Anshul Srivastav, Chief Technology Officer and Digital officer, Union Insurance
- Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum
The link in the bibliography fueled this discussions in FIAKS community on credit card reward points after finding out that Blake DiCioccio and her husband, Jason, flew around the world in business class in 2017, from San Francisco to Taipei, Tokyo to Belgrade, and Frankfurt back home and they didn’t pay for these trips, JPMorgan Chase & Co. did.
A member agrees that we are facing the same concerns. Reward points on credit cards were based on a certain assumption of revolve ratio of customers. The interest income is supposed to offset the high cost of rewards. What is happening here is –
- Customers are more aware and they know a way to game the points.
- Too many banks are launching credit cards, hence it makes it easier for customers to game.
- The interchange income for issuers also varies based on merchant category codes. As more spends happen on low interchange categories like utilities, government, and education due to digitization, the issuer blended incoming interchange income is going down.
- Customers no longer want to revolve at 36 to 40% APRs. With so much information available online, consumers would rather take cheaper credit like personal loans, balance transfers, etc. Hence, income is going down.
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