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Do Costco shoppers have a higher percentage of "loan activity" on their cards? The type of activity that is more lucrative for credit card companies. I would
by pkfrank 11y ago
Do Costco shoppers have a higher percentage of "loan activity" on their cards? The type of activity that is more lucrative for credit card companies.
I would think that a possibility, given that many small businesses stock their shelves with products bought directly from Costco.
- kasey_junk 11y agoThat is a large part of the American Express business model. They can offer larger incentives for use (to make up for the lower acceptance rate) because they get more in interest from the card as many small businesses use Amex as their operating line of credit.
- teej 11y agoI thought the gap was bridged by the fact that Amex charges 2x per transaction of the other CC companies.