stevejensen
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The bank charges the vendor between 1 and 3% of the purchase to be able to accept their card.
So if you buy something for $100 at Walmart with your Visa card, Visa gives Walmart $99, and keeps the other $1 as a profit.
Same thing with debit cards, but it's a smaller %. |
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Norton N
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If you make one payment so much as one hr late your interest rate will go up. Also, you pay interest on the whole balance Every month. This does not reduce the principal of your debt.
The best way to maintain good credit is to use your card and pay the whole balance in 30 days.
Failing that, try double the monthly payment to knock it down sooner. Your credit score will go up, while your credit debt goes down. |
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stimpy
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Well, it's more a matter of being entrenched in debt. Odds are, the "free" status temporary, and/or the temptation to overspend and not repay (although maybe not applicable to you) would be applicable to a noteworthy percentage of all who accept the offer..........credit cards are the business of debt, so assume that such an offer would generate massive amounts of debts recievable, despite heralding the "free" status. |
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"Einstein"
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Because banks have banks which give out a "loan" to that bank (the issuer of the credit card) for the amount of the card limit. This in turn attracts interest to what is called a bearing account. The issuing bank makes money from interest which comes from individuals whom are "interested" in making sure this bank stays profitable. That's why they call it interest. email me if you want a pure example and a longer explanation. i can make more simple. lol. good luck. (by the way, so far no one above me is close) |
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Doctor J
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1) the banks charge the vendors a fee for every credit card transaction.
2) most people carry a balance on their cards, so the banks make lots of interest on these balances
3) some people are late with payments or charge over their credit limit, and the banks make BIG fees for these actions
Don't worry, the banks are doing very well on the profits in credit cards. |
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-=NiWrA=-
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through interest...a series of interests. |
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SubJ
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1. By the discount that they get from the vendors.
2. Interest on overdue payments.
Other charges which the issuer recovers for rendering services. |
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austinguy62
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Its actually the other way around, the vendors pay to the bank anywhere from 2 to 3% of the purchase. No long ago many vendors were going to drop AMEX as they have the highest fees of any credit company. |
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Melb_dude
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Generally banks take a cut out of the amount payable to the vendor, this is in the range of 1.5 to 2 %, so that covers them for interest free period and their operating costs. and once a person is not able to pay the full amount by the due date, they charge a heavy interest rate, highest interest for any kind of credit in organized sector, so this covers all their expenses, leaving them with a neat profit. |
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ak
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Very few people pay their bills in full. And human nature is to charge more than we can pay monthly. |
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thewindowman
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CREDIT DEBT IS WHAT? A TRILLION DOLLARS? AT 20% INTEREST THEY CAN'T COUNT FAST ENOUGH.
GOD BLESS |
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