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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: How Credit Card Cos make $$ Date:  6/15/2000  8:52 PM
Author:  hempets Number:  36686 of 312185

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.

I'm their worst nightmare (after people who don't pay). I only charge $90 - 200 a month, which means they're only collecting $0.90 - $4.00 a month on my transactions. Barely enough to cover the cost of billing me & processing my monthly payment.

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