NEW YORK—While consumers love their credit card rewards programs—as evidenced by the heated rewards battle among the big issuers—retailers are not enamored with those offerings, a new report indicates.
Indeed, many retailers are trying to cut off the use of rewards cards in their stores, reports the Wall Street Journal.
Large merchants, including Amazon, Target and Home Depot, are pushing for the right to reject some rewards credit cards, which typically carry higher fees for merchants, the Journal reported.
The retailers are trying to end the card networks' “honor all cards” rule, which requires merchants that accept Visa- or Mastercard-branded credit cards to take all of them.
“If merchants could pick and choose among Visa or Mastercard credit cards, those with the highest merchant fees—and most generous rewards—likely would be on the chopping block. Ultimately, though, the retailers are looking for bargaining power that could help them lower fees across the board,” noted the Journal.