I'm one of those people that pay the entire balance every month to avoid paying any interest, and being told I've been taking a free ride all these years does not soften me up to pay my supposed fair share to support the credit card system.Glenn Reynolds comments:
I’m still waiting to be told how this credit-card plan will stimulate the economy.Well, let's see... People will start canceling their spare credit cards because they don't want to pay the annual fees. That will take down their credit score making financing for large purchases harder. With more expensive mortgages (ie: higher interest rates from lower credit scores), housing prices will fall. I think that effect will be pretty small.
On the plus side, AmazonPrime and Costco will probably benefit. Costco only takes American Express or cash/debit. AmazonPrime makes the most sense with a Chase issued, Amazon branded credit card. In both instances, subscribers are used to annual fees. If Amazon and Costco can integrate any credit card fees into their member fee without too much of a price increase, they'll do well. Customers don't like to be nickle and dimed with multiple fees. Their credit card partners (AmEx and Chase) will benefit most because their credit cards also function like loyalty cards and the loyal patrons are already used to paying for their own loyalty.