Credit card is a fiercely competitive business. Issuers regularly introduce new products or refreshes with better rewards and more benefits in order to woo customers and keep them loyal. More rewards and benefits mean higher expenses. Here are a few things that issuers do to make the economics tenable:

Banking Relationship

Bank of America Rewards (previously Preferred Rewards) is the gold standard of combining credit cards and banking relationship. Customers with assets at Bank of America or Merrill can receive additional credit card rewards. In April 2026, PNC introduced its own version called PNC Total Rewards. Customers with more than $500,000 or more in assets at the bank can get 35% more credit card rewards. Wells Fargo took a slightly different approach, offering a higher sign-up bonus for its Autograph Journey if customers have a Premier relationship.

Furthermore, Sofi Smart Card is the fintech’s secured credit card backed by SoFI Checking and Savings balance. The card offers unlimited 5% rewards on groceries which have a low interchange rate. On average, Sofi would lose about $3.5 in rewards expense on every $100 grocery transaction. Without the contribution from the banking side, the credit card P&L alone would be tough to balance.

Chase Freedom Rise is a card for new-to-credit customers who tend to pose higher risks to issuers. Freedom Rise offers competitive rewards, including 3x on dining up to the first $6,000 in the first 6 months, 1.5x on everything else and $25 statement credit after enrolling in autopay in the first 3 months, at no annual fee. The card’s product page calls out the following: “Having at least $250 in Chase checking or savings accounts increases your chances of being approved.”

Navy Federal Credit Union Visa Signature is a great card. At $49 annual fee, the card offers a full credit for Amazon Prime Membership annually, 3x on travel, 2x on everything else and a $120 TSA credit every four years. Nont only does a potential customer need to be either a service member or have one as family, but they also need to make a $5 deposit to open a Membership Savings Account.

These products’ P&Ls likely include benefits that issuers get from the banking side as well, whether it’s savings on deposits costs & marketing expense or checking account fee. These savings or additional revenue dollars help offset the higher credit card rewards expenses while keeping products competitive. Moreover, the more products a customer has with a bank, the more likely they will stay engaged and loyal, lowering the need to constantly acquire new customers.

Rewards Expire After 12 Months Of Inactivity

Shell Credit Card, Citizens Bank, US Bank and M&T Bank are a few prominent examples of issuers that expire rewards after 12 months of no transactions or rewards activity. Usually, if an account is dormant with no transactions for 22-24 months, it will be closed by issuers and rewards, where legally allowed, will be forfeited. This new trend accelerates such a closure schedule, indirectly forces customers to use their cards more and saves some rewards expense.

A High Annual Fee & Offers In A Coupon Book

In the past two years, we saw a few premium cards refreshed with more benefits and unprecedentedly higher annual fees. The high annual fee helps pay for the additional rewards. The coupon book style creates a mental and logistics overhead for cardholders. Any unused credit will be a saving for issuers. Additionally, some of the credits are funded by merchants who want access to these high-spending premium cardholders. That also helps balance the P&L as well.