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The new credit card laws are having some unexpected consequences for credit card holders.

While many analysts expected credit card companies to cut back on perks for customers, CNN Money is reporting that in many cases banks are aggressively increasing their paybacks.

The perks are popping up by as much as 25 percent for reward points and a whopping 60 percent for some cash back programs.

Why are the credit card issuers suddenly in such a giving mood? They are hoping the increased perks and points will help retain big spending customers who are less likely to default on their credit card debts.

While credit card companies earn money off the interest on customer’s balances, they are increasingly earning more from the transaction fees collected when you use a card.

Banks are hoping by increasing the benefits they’ll improve customer loyalty and retention. Also, they hope the new points and rewards, which are tied to spending, will encourage their most responsible customers to spend more. (More transactions = more fees).

A closer look at the reward updates reveal:

• American Airlines cards users with Citibank will now earn 1.2 miles for every dollar spent, up from 1 mile per dollar.
• British Airways card holders with Chase will now earn 1.25 miles per dollar spent, up from 1 mile per dollar.
• Chase Freedom Card users will now get 5 percent cash back on certain purchases, up from 3 percent for the same categories

If you’re one of these card holders be sure to take advantage of your new rewards.

If you’re considering getting credit card rewards be sure to read the fine print and get fully informed on the costs of the card. Some rewards cards come with high annual fees, and you’ll want to weight the benefits before signing on.