Credit Card Companies Cut Perks for Good Customers

By Jess Kilby,  Newser User
Posted May 19, 2009 6:34 AM CDT
President Barack Obama speaks about credit card debt reform at a town hall style gathering at Rio Rancho High School in Rio Rancho, NM, Thursday, May 14, 2009.   (AP Photo/Charles Dharapak)
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(Newser) – With revenues from high-risk cardholders dwindling, credit card companies are moving to impose stiffer fees on customers who've been accustomed to preferential treatment, the New York Times reports. Expect banks to bring back annual fees and slash reward programs, say industry insiders. And card holders who pay off their entire balance on time each month may find themselves paying interest anyway—for the weeks between purchases and paying off their bills.

“It will be a different business,” says a banking lobbyist. “Those that manage their credit well will in some degree subsidize those that have credit problems.” An analyst sees it as leveling the playing field. “There will be one-size-fits-all pricing, and as a result, you’ll see the industry will be more egalitarian in terms of its revenue base.”