The claim that rewards credit cards benefit the rich at the expense of the poor has been trotted out many times by those who want to cap the fees charged to merchants by card issuers. Though the myth of this so-called “reverse Robin Hood” effect has been debunked repeatedly, it continues to resurface from the grave. This is troubling for various reasons—not least because capping interchange fees would actually harm the poor the most.
More Updates
How the “Credit Card Competition Act” Would End 250-Million Co-Branded Card in the U.S.
Electronic Payments Coalition
Read
General
Credit Cards and the Reverse Robin Hood Fallacy: Do Credit Card Rewards Really Steal from the Poor and Give to the Rich?
Electronic Payments Coalition
Read
Payments Trade Group Rebuts Retailers
Payments Dive
Read
The Durbin Amendment 10 Years Later: A Decade of Loss for Consumers and Small Businesses
Morning Consult
Read