A recent report showed that there is a decline in the number of cards being issued that are tied to cash back offers. Back in 2005, there were over 40 cards and now less than 15. It appears many of them are going to other forms of rewards, such as points and airline miles. All of these cards are known as rewards cards. Merchants essentially pay for the rewards are the Interchange is higher for these types of cards. The future may shift on these types of cards due to the economy, changes in people’s spending habits and possible government regulation in the future if that day does come. Reward cards have become a bigger expense for merchants and a profit area for some companies. Many processors charge merchants heft fees when they process reward cards. The downside is if reward cards disappear, overall credit card usage would decline as many consumers simply use credit cards as a convenience and pay the bill off every month. A larger percentage than you may imagine do this actually. I personally am a firm believe behind this philosophy, only using credit cards as a convenience and nothing more.