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Card Issuers: Facts and Fictions

"...large consumer base that will not defect overnight..." "They can simply hike the interest rates that cardholders are paying to offset the rise in charge-off expenses. It’s called risk-based pricing."

I'm sorry. WHAT!!! They can simply hike the interest rates that cardholders are paying to offset the rise in charge-off expenses. "It's called risk-based pricing." WHAT???? You're saying that in order to offset charge-off expenses DSC/AMEX would raise the interest rates on my/their credit card(s)? If that's true, who would keep using they're DSC/AMEX card? I don't know about you, but if I ever had to carry a balance I would want it to be on a card that charged me a lower rate than a card with a higher rate. I think if this were to happen you would definitely see many of their loyal customers defect overnight.