Yes, it is true that people paying with debit and cash get to fund the CC point programs. And how is that, you ask?... It's because the merchant raises prices slightly to cover the higher transaction fees of which a portion goes to fund the point programs (scam) that the CC companies run. Generally, poorer people pay with cash and debit cards.

I might mention that the point programs are just the modern day rebates, but just applied across all purchased items, instead of a select few.