The Federal Reserve Bank of Boston released a study in July that said the more wealthy consumers use their credit cards, the more low-income shoppers suffer. The results showed that merchants were forced to hike prices to pay for swipe fees, hurting not only consumers who chose to pay with cash, but those struggling financially as well. Now, the bank has revised the report after heavy criticism from financial analysts.
Tim Chen, the founder of NerdWallet, questioned the results of the study after finding that elements, such as housing and renting data, were not taken into consideration. The bank released new results that showed slightly lower estimates after applying these factors, according to the New York Times. While he claims Chen’s assertions did not play a critical role in re-examining the study, Federal Reserve Bank of Boston representative Scott Schuh thanked him for his observations.
The nation’s credit card debt totals around $826 billion, according to statistics released by the Federal Reserve. Many Americans are still struggling to pay down their existing debt stemming from the economic collapse in 2008.