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Cashback is not really a thing around me (Switzerland) and other rewards are just practical jokes - like overpriced black socks subscriptions offered slightly l
by soco 4y ago
Cashback is not really a thing around me (Switzerland) and other rewards are just practical jokes - like overpriced black socks subscriptions offered slightly less overpriced. Yet credit cards thrive.
- crazygringo 4y agoYes but interchange fees are far lower in Europe. In the US they're around 2%. In Europe they're more like 0.3%, which is why cashback/rewards aren't a thing. My point is that interchange fees aren't where credit cards make money, it's on the interest of people who don't pay in full.
- medvezhenok 4y agoSome cards like AMEX Gold/Platinum don't allow you to carry a balance at all, and make most of their money via interchange fees. There is a spread between rewards provided and actual fees (fees are closer to 2.5-4%, rewards usually top out around ~2%)