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The credit card companiesand banks probably make most of their money from charging the merchants. Not from the rates on customers.
by jeltz 11y ago
The credit card companiesand banks probably make most of their money from charging the merchants. Not from the rates on customers.
- ghaff 11y agoThe "credit card companies" (i.e. the networks like Visa) make their money from the transaction fees which they split with the issuing banks. The transaction fees are also a significant money-maker for the banks but my understanding is that they typically make more from interest and fees (including both annual fees and late fees). Unsurprisingly the high-end cards make relatively less from interest.