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Most if not all of those rewards are paid for by the interchange that they charge merchants, not the interest they charge customers. Of course, interest and fe
by limagnolia 1y ago
Most if not all of those rewards are paid for by the interchange that they charge merchants, not the interest they charge customers. Of course, interest and fees are also profitable, but banks are pretty happy if you use the card and pay it off every month.
- noduerme 1y agoReally? I guess I didn't realize that. I always felt a kind of "screw you" joy at paying it off completely every month, like I'm getting away with something lol.
- IAmBroom 1y agoYou are. You are reducing the profits of the credit card company. Not to any meaningful degree, because you and I are outliers by paying our credit balance each month - or else they'd compensate for it with fees.
- socalgal2 1y agoAll the costs, reguardless of where they are accrued, are figured into the prices every one is paying
- account42 1y agoUnfortunately in many cases they are also figured into the prices cash customers pay.
- IAmBroom 1y agoThat's implied by "every one".
- limagnolia 1y agoAs others have pointed out in other comments, accepting cash has its own cost. I leave it up to business owners/managers to decide how much it costs them and if they want to offer me a better price if I pay by card or by cash, and if they make the policy clear, I am more than happy to determine which payment method to use based on their own pricing policy.
- IAmBroom 1y agoBecause money is fungible, it's meaningless to say "X is paid for by Y not Z", as long as Y and Z are both greater than X.
- limagnolia 1y agoYes indeed. My larger point is banks are happy if you pay off your balance each month, and banks are happy if you carry a balance but still make your payments. They are satisfied with either type of customer. They just don't like customers who don't pay ever.