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Why Credit Cards Can't Afford to Raise Fees

For people with cash and many alternate forms of electronic payment available, what the author says is obvious.

The core of the larger question is about 'credit insurance and immediacy'.

Issuers are implying that without a yearly 'insurance' fee they will have a difficult time existing and will be unable to insure this immediately available form of 'general credit'.

The consumers decision will revolve around the total cash they have available, other forms of specialized insurance they own, their best estimate for maximum general immediate credit they may need and the nature of the deal and yearly insurance fee the competing issuers are offering.

It's not so different from wireless carriers leveraging your cell plan for an extra $10 a month so you know you can make the 911 call.

Welcome to the '80's.