It's simple economics based on interchange fees -- the percentage that merchants pay card
companies every time consumers swipe their cards. The result is that rewards programs are getting more enticing -- from cash-back deals to triple-point bonuses -- as credit card companies vie for
consumers.
The strategy is not simply short-term. "Banks are hoping that when consumer confidence turns around, they'll be coming around for a car loan, [or to] buy a new house," says Robert Manning, author of Credit Card Nation.
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