Issuers are fine-tuning their rewards strategies, using carrots that can encourage fiscal responsibility and help them weed out less-desirable accounts.
While traditional rewards programs based on purchases are not going away, observers say that offering points and other perks based on cardholders’ behavior is a low-cost way to find the best customers, and will appeal to consumers who are trying to cut down on their spending.
Plus, with delinquencies and chargeoffs at near-record highs, bankers say that rewards, such as lower....