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> For banks, the $91.2 billion in fees they earn on credit-card portfolios is now more than the interest they charge on the loans That really surprises me, giv
by christophilus 7y ago
> For banks, the $91.2 billion in fees they earn on credit-card portfolios is now more than the interest they charge on the loans
That really surprises me, given how high CC interest rates are and how many people carry a balance.
- dylan604 7y agoThat was surprising to me as well. Then again, if there is a per transaction fee multiplied by the amount of credit card transactions per day, I could see where those add up quick. A cursory search online stated over 100 billion transactions annually. So I could see where the fees are making more money than interest.
- gowld 7y agoInterested rates are 25%/yr. People are carrying a balance either have a low balance or we bankrupt and don't pay. Meanwhile fees are on every months spending. If you spend to your limit every month, that's 12x the carried balance.