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Do responsible customers actually cost the credit card companies money or do they just not bring in any revenue to speak of?
by Aaronontheweb 16y ago
Do responsible customers actually cost the credit card companies money or do they just not bring in any revenue to speak of?
- ars 16y agoThey are borrowing money each month, without paying interest on it, so it does cost the credit card companies money.
- Aaronontheweb 16y agoLosing money in its time-value. Gotcha. Edit: I thought they still made money off of the vendor fees though?
- ars 16y agoThey do yes. Between 0.5% and 3%. It costs them some money to process an account though, send bills, handle payments etc. If someone is charging reasonably frequently then they are still profitable.