FlyerTalk Forums - View Single Post - The beginning of the end of travel rewards?
Old Jan 6, 2019 | 6:50 am
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Often1
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Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,253
Originally Posted by kapooncha
Rewards Credit Cards Gained Fanatic Following Now Banks Are Pulling Back- WSJ article

Nearly all the banks have severely restricted how many cards/sign-up bonuses customers can get. I know the common reply is that during the next recession, banks will be begging us to come back. I'll believe it when I see it.
No, the banks will not. Same as air carriers will not cut fares. Both cut "capacity."

The myth that unprofitable customers will somehow help the bottom line is dead and gone. When merchants are able to end higher interchange fees for specialized cards, the cost of those cards will fall directly on card issuers (banks) and it is unlikely that the costs of such a card will be worth it.
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