Federal regulators have launched an investigation into credit card rewards programs, examining whether the costs of premium rewards are being unfairly distributed to merchants and consumers who do not participate. The probe focuses on interchange fees that fund rewards and their impact on retail prices paid by all consumers.
The Consumer Financial Protection Bureau has requested detailed data from major card issuers regarding rewards program economics, redemption rates, and the distribution of costs across different customer segments.
Banking industry groups have pushed back against the investigation, arguing that rewards programs are popular consumer benefits that drive healthy competition among issuers and provide genuine value to cardholders.
