Originally Posted by
akr1970akr
The loss rates on bank cards tend to be 300 bps, for store cards it runs about 700 bps.
That client base may not be able to support lots of SUBs and spending bonuses, since the loss rates are so bad.
And this is before we are even in a recession.....
Interest rates on store cards tend to be close to 30% APR, though--and many of those cardholders do carry balances. Plus, if there's a Visa or MC logo on it, they still earn interchange revenue from use at other stores (which people will do despite typically earning few to no rewards on such spend).
Anyway, one store card that I can think of offhand that offers effectively 7-10%+ back (depending on your state) is
B&H's new card. I'm not sure how sustainable that is, however, even considering the presumed lack of interchange and the high APR.