Banks [that issue credit cards] are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups. “It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.
Credit Card Industry Aims to Profit From Sterling Payers - CNBC.com
tedr: I almost always pay my credit card bills in full. If my cards need to charge me an annual fee, I am fine with that, as they are floating me net-30 terms. But if my credit card providers start charging interest from the moment of purchase I will use my debit card and carry much more cash. They already get a cut of every credit card transaction I make (at the loss of the store owner I am patronizing.) and I provide them with steady cash compared to the dead beats they knowingly extended credit to.
Net-30 payments are the norm for all my other vendors, why would I expect anything less from my credit card provider. I don’t care what perks I’m offered, I will be very reticent to use my card if the interest clock starts ticking automatically, before I’ve even had a chance to pay it off. If they think double dipping on their reliable customers is how to save their business from their purposeful practice of encouraging poor repayment habits, they can eat a whole bag.
(via tedr)
