Credit card issuers are increasing their rewards for the holiday shopping season to lure consumers away from debit cards and competitors.
Shoppers with favorable credit scores will benefit most, by acquiring extra cash or miles while they do their gift shopping, Reuters reports.
"The rewards have become very, very attractive in terms of cash back and travel," said Bill Hardekopf of LowCards.com.
"Issuers have stepped up the rewards because it's now more lucrative for the banks for you and me to use our credit cards instead of our debit cards,” Hardekopf said, reports Reuters.
Debit card interchange fees are the amount that retailers pay to card issuers when the cards are used.
Those fees were capped on October 1, 2011, when the Durbin amendment to the Dodd-Frank financial reform legislation took effect.
Both Chase and Citibank have cards that are offering new applicants $200 in cash back after they spend $500 on their cards.
Shoppers with cards that carry balances are better off paying in cash, or calling up their credit card issuer to wheedle a lower rate on their cards, reports Reuters.
One seasonal offer includes an 11 percent rebate on purchases from the Upromise World MasterCard, issued by Bank of America.
