Do credit card companies make money from sources other than their credit card customers?

Answer 1

Yes, they charge vendors a fee also.

In theory, as a customer, if you paid your card off every month on time, you would never be charged a fee. With some credit cards, you would also get cash back.

The fact is though, that the vendors have to charge you more to cover their transaction fees from the credit card companies.

Answer 2

You bet. I believe it is something between 1%-2.5% of each transaction from the merchant (such as a store or service). Basically, the merchant is paying a fee for the convenience of getting more transactions from the customer.

American Express I believe charges on the high end, such that some stores or restaurants stopped accepting Amex for sales in protest a few years ago.

That's why some merchants will discourage you from using credit cards, either totally, or they'll say they'll take them only about a certain dollar transaction amount. Arco gasoline stations don't take credit cards but only ATMs, where there's a fee tacked on to the transaction - so you can see where they save a lot of money on transaction fees.

Answer 3

they sure do.
infact every busness that wants to be able to accept credit cards has to pay a fee. they are not a one time fee either. they often pay a percentage of credit sales. you can see for yourself if you go to staples. they sell the swipers to anyone. and have brocures on the diffrent plans that the credit-card companies have.

Answer 4

Of course, first they get a 9% or better discount from vendors.
Then they sell vendors their machines & accounting reports.
Some used to sell their customers information to others.