how do credit card companies make money?

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how do credit card companies make money?

2007-03-20 21:12:01 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing

3 answers

Interest, annual fees, late fees, transaction fees, and counting on people to make only the minimum payments so they end up paying 3 times the amount they actually borrowed in the first place.

2007-03-22 03:23:21 · answer #1 · answered by zoogrl2001 3 · 0⤊ 0⤋

Also through the 2.5% or so fee they charge the businesses on all their credit card transactions.

2007-03-21 06:44:58 · answer #2 · answered by gosh137 6 · 1⤊ 0⤋

Through interest on unpaid balances, through selling you insurance, through their annual fees.

2007-03-21 04:15:04 · answer #3 · answered by lyllyan 6 · 1⤊ 2⤋