Credit card companies make money from merchants who pay them a fee and from interest on credit card debt. There are likely additional revenue streams but those are 2 prominent one.
> Credit card companies make money from merchants who pay them a fee and from interest on credit card debt.
Wrong on the second point. The issuing banks (Capital One, Chase, etc..) are the ones that collect the revenue from the interest/late fees on credit card debt.
The credit card companies (Visa, MC, etc..) only make money from the transaction and settlement phases.
Wrong on the second point. The issuing banks (Capital One, Chase, etc..) are the ones that collect the revenue from the interest/late fees on credit card debt.
The credit card companies (Visa, MC, etc..) only make money from the transaction and settlement phases.