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Do you happen to know how revenue breaks down between processing fees and interest on carried balances?
by thinkling 8y ago
Do you happen to know how revenue breaks down between processing fees and interest on carried balances?
- notatoad 8y agoi don't know the numbers for each, but my understanding is that processing fees are paid to the card provider (visa or mastercard) and interest is paid to the issuing bank. visa isn't making money off the interest, and your bank isn't making money off the fees.
- asperous 8y agoMakes sense, Visa isn't a bank per se so they don't want to carry the default risk and make worthiness decisions. I wonder what the split between Goldman Sachs / Apple is.