You're not imagining things — your credit card rewards are shrinking. Here’s what’s behind the alarming slide

Core Insights - The credit card rewards landscape is changing due to economic uncertainty and new regulations, which may negatively impact consumers and the industry [1] Group 1: Credit Card Usage and Debt - In 2024, 81% of U.S. adults owned a credit card, equating to approximately 215 million individuals [1] - Nearly half of credit card holders carry a balance, with total credit card debt reaching a near-record $1.21 trillion as of Q2 2025 [1] Group 2: Role of Rewards in Consumer Behavior - Credit card rewards have significantly contributed to the industry's growth by attracting and retaining customers, often leading to increased debt [2] - Rewards function as a dual-purpose behavioral currency, providing both economic relief and emotional value to consumers [2] - The redemption of rewards has become a critical moment for consumer satisfaction, with the execution of the redemption process impacting customer experience [2] Group 3: Consumer Trends and Financial Management - Consumers, including middle-income earners, utilize rewards not only for managing spending and debt but also for maintaining their lifestyle [3] - By the end of 2022, consumers had accumulated reward balances exceeding $33 billion, highlighting the economic significance of these rewards [3]