> How it works? ... Either behind transactions fees, or by fixed costs covering maintanance of credit card, or by some other ways. You're correct, US credit ca

> How it works? ... Either behind transactions fees, or by fixed costs covering maintanance of credit card, or by some other ways. You're correct, US credit card companies do still make a profit on those of us who pay off their balance in full every month and therefore pay no interest.[1] Visa/MC/Discover/Amex all charge the merchants a percentage (~2%) to process a credit card transaction. I have a cashback card with no annual service fee which pays 1.5% cashback. Let's say I spend $10,000.00 on this card in 1 year. Visa will collect $200.00 in merchant fees, pay me $150.00 in cashback, and gross profit of $50.00 on my account for 1 year. Some cards charge an annual service fee which adds to the gross profit. [1] It's possible there are some people who are a net loss to the card issuers due to gaming the rewards systems, but generally the issuer will make money on someone who pays $0 in interest.