ORIGINAL: Redclub
The way these points work is the companies whether Cabela's ,the airlines etc sell these points to the credit card companies and you get the points from the credit card companies. The credit card co. then use those points for advertising and getting people to use their cards. This is a very big money maker for all involed. Some co. like the airlines and motor manufactures make more on these than they do on there products.
As long as we pay our bill every month without fail we win too.
Redclub
I think Cabelas actually owns the bank that is contracted with VISA "Worlds Foremost Bank". The bank subsidiary is getting like 1.13% from the VISA system everytime there is a transaction. I don't think Cabela's is concerned about the profits from the card (except that interest revenues cover losses on bad accounts). Thepoints must be used at Cabela's so the 1% they give you is probabably 50% subsidized by the markup of the products you purchase from them.
I think the main idea is to strengthen a customers connection with Cabela's "the retailer" by use of the card (which advertises to you each time you take it out) and the award of points.
Happy Hunting, Phil