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My understanding is there are 3 different companies which make money from the use of credit cards: The credit card company(eg Visa or Mastercard), the issuer (eg. a bank) and the processor. What is the breakdown for money paid for each of these services?

Also, do credit card companies issue cards directly (not thru a bank eg.)??

2007-06-05 10:10:23 · 2 answers · asked by KhrisB 3 in Business & Finance Credit

2 answers

I am the webmaster of http://www.creditcardandloan.com/ . The people who market the credit cards, (the websites) make $20-$100 per approved card. It varies by the issuer(Citi, Discover, AMEX, etc.). The online card industry is very very competitive though, making it extremely hard for people to do well without a large advertising budget :(.

2007-06-05 10:20:20 · answer #1 · answered by Anonymous · 0 0

Many credit cards are issued directly, especially gas cards.
The income(profit) each credit card company makes on individual cards varies by company and rates of the individual card holder and the rate they charge the person accepting the card. Also, the issuer profit varies depending upon the card company, volume of cards issued, usage of the card holders. The processor compensation varies also between credit card issuers. A large portion of the processing is currently being out source to India and other countries.

2007-06-05 17:24:36 · answer #2 · answered by oldcorps1947 6 · 0 0

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