Never looked at it this way. Makes sense I suppose. Folks who carry balances and pay interest fund the points of those wealthy enough to immediately pay off their balances, the same folks who are less likely to need those extra dollars.

We (in the US) pay something like 3-5% more for things to cover credit card transaction fees. If you're not getting rewards for that purchase, you're simply losing all of that money. That's why I use a credit card with rewards, and it's also a reason (alongside the points in this post) that I would support any movement to get rid of them.