Cash payers subsidize $30B in credit card perks annually

Key facts

• Consumers paying with cash and debit cards subsidize credit card perks.
• The estimated annual subsidy amounts to $30 billion.
• This subsidy benefits credit card users who receive points and rewards.

This study highlights a hidden cost associated with credit card usage, where the benefits enjoyed by cardholders are indirectly funded by consumers who opt for cash or debit payments. This dynamic can lead to higher prices for all consumers, regardless of their payment method.