Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Is the Government Coming After Your Credit Card Rewards Points?

For consumers, credit card rewards programs can be very, well, rewarding. 

Consumers routinely earn cash back, free flights, concert tickets, and a slew of other perks not typically available for debit card purchases, and certainly not available when using cash. 

For investors, these programs help grow the top and bottom lines by bringing in new customers and creating loyalty with existing card holders. It's a tactic that works across the board, from credit card companies like American Express (NYSE: AXP  ) and Discover Financial Services (NYSE: DFS  ) to megabanks like JPMorgan Chase (NYSE: JPM  ) and Bank of America (NYSE: BAC  ) . 

Not content to regulate the root causes of the housing market bubble, complex derivatives, "too big too fail" banks, and other truly mission-critical issues, regulators this month announced they will now be reviewing credit card reward programs.

In the video below, I explain my befuddlement with this announcement. Credit card rewards programs are win-win propositions, and they certainly didn't play a role in the financial crisis. Regulators need to focus on the real problems, and leave programs that benefit consumers and shareholders alone.

Many investors are terrified about investing in big banking stocks after the crash, but the sector has one notable stand-out. In a sea of mismanaged and dangerous peers, it rises above as "The Only Big Bank Built to Last." You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2745188, ~/Articles/ArticleHandler.aspx, 9/28/2016 4:45:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:00 PM
AXP $64.22 Down -0.06 -0.09%
American Express CAPS Rating: ****
BAC $15.38 Up +0.09 +0.59%
Bank of America CAPS Rating: ****
DFS $57.05 Down -0.02 -0.04%
Discover Financial… CAPS Rating: *****
JPM $66.71 Up +0.35 +0.53%
JPMorgan Chase CAPS Rating: ****