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> Credit card companies make a decent amount of their money from the interchange fees, but the majority of their income comes from interest, cash advance fees,
by LordGrey 2y ago
> Credit card companies make a decent amount of their money from the interchange fees, but the majority of their income comes from interest, cash advance fees, and penalty fees, all of which the well-off credit card user paying off their balance each month does not contribute to.
Those customers are called Deadbeats[1]. All credit card customers should strive to be Deadbeats.
[1] https://www.investopedia.com/terms/d/deadbeat.asp https://www.investopedia.com/terms/d/deadbeat.asp
- xenospn 2y agoIn my mind, this implies that the vast majority of customers are not deadbeats - meaning they never pay off their cards in full and always have interest?
- LordGrey 2y agoMy understanding is that 25-30% of all credit card customers are deadbeats. I've worked with some fintech companies and that number came up in some discussions. I cannot, however, find a corroborating source.