[adrr]

I bet the banks lose money on credit cards in EU. They are loaning out money up to 60 days for only a 0.3% fee. Interchange is meant to cover these loans.

[rsynnott]

That’s 1.8% annually. Better rates than European banks are getting on most low-risk lending.

[Rexxar]

It's even better, 3 month euribor rates are currently negative. So it's a safe way to use their money without "paying" the negative interest rate.

[adrr]

You can get home loans in EU with 1.8%? That’s the lowest risk since it has collateral. These are unsecured loans.

[rsynnott]

(A) Yes, in many countries. (B) that card loan is only at effective 1.6% for 60 days; if it’s not paid at that point it turns into potentially 20%. (c) Most card payments are debit anyway afaik; no loan longer than a day or so involved.