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URL:  http://boards.fool.com/the-previous-post-didnt-mention-that-credit-card-12739968.aspx

Subject:  Re: How Credit Card Cos make $$ Date:  6/15/2000  7:09 AM
Author:  Crosenfield Number:  36582 of 308463

The previous post didn't mention that credit card companies charge the merchants who accept the cards between 1% and 2% of the amount charged. Therefore, the convenience users who charge $1000 a month are generating $10 to $20 a month in fees from merchants.
It is quite possible that the card company can make a small profit off this amount.
Therefore, a customer who charges plenty and pays if off every month may well be a profitable customer.
Just making it clear that we who pay off the card every month aren't necessarily taking a free ride at the expense of people who carry a balance.
Best wishes, Chris
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