You wanna see deadbeat? The first time I get an annual fee notice, I’m cancelling the card. Mr Visa and Mr MasterCard get zippo when I pay cash–and I’ll start asking Mr Merchant for a cash discount, too.
This is going to cost business bigtime–fewer card holders means fewer impulsive or "nice to have" purchases by the 50 million solvent folks. I expect a lot of going-out-of-business sales, where cash will be king.
Update (21 May). Lots of discussion over at Ann Althouse, but most of it is cheap wine or dope-in the-dorm talk. Let’s wait and see if the banks have the nerve to start charging an annual deadbeat fee.