DALLAS-To Mitch Raymond, SVP of products for TNB Card Services, there is little question rewards programs will continue for the foreseeable future because, "rewards cards are so prevalent in the marketplace they are almost expected by consumers." If one issuer does not offer a rewards card, he noted, people are going to get one from another.
"Issuers have always tweaked their rewards programs here and there, and that will continue," he said. "Over time, the culmination of all those tweaks will end up being the new normal. There will be changes across all aspects of cards programs as regulations take hold over the coming months. We may see more widespread adoption of annual fees or activity fees, but right now I don't think any issuer has a model they are entirely happy with. As things go down certain paths, we will see things shake out."
Raymond said there is a significance to the fact there has not been a mass exodus from rewards programs while the industry digests all the changes from the CARD Act-including the impact the legislation has and will have on prices going forward. "Rewards cards will be kind of a second wave. If you change everything at once, you don't know the impact of any of the changes."
