I think once they settled and paid the $64 million to the thousands of restaurants in California they were charging 100% interest on their loans they introduced the marketing only part of the program. That was two or three years ago. They would loan them money (sorry, they do not write loans, they do cash advances against the diners coming in) they would then collect twice that amount as repayment for the cash advance. By calling it a cash advance, Rewards Network tried to get around California law requiring interest of no more then 10% unless they were a licensed lender.

I think now some restaurants need to do whatever they can to get people in the door. I know in my area I've tried a few places only because they were part of one program or another, so it does work. I always feel bad though putting the card down on the table, knowing the restaurant will not see a penny from that charge probably, it all goes to Rewards Network as payment for their services.