Credit Cards and the Reverse Robin Hood Fallacy: Do Credit Card Rewards Really Steal from the Poor and Give to the Rich?

Recently, the International Center for Law and Economics (ICLE) published a study analyzing the credit card market and the “Reverse Robin Hood” fallacy—the erroneous belief that credit card rewards programs steal from the poor to benefit the rich. The study authors debunk this idea, concluding that addressing the concern by capping credit card interchange would “create far more risk of harm than good.” The full study can be found below.