In NY we are already seeing 3-4% being added to the cost of CC purchases. That offsets any reward (of 2-3%), but how many consumers will go back to carrying wads of cash again? Using a CC still gives extended protection on warranties, better prices on vacation travel, access to concierge, etc. An option to close a CC that does that is you might see your credit score go down since your total authorized chargeable amount is lower.