The Motley Fool Discussion Boards

Previous Page

Personal Finances / Cheap Air Fares

URL:  http://boards.fool.com/mastercard-are-in-the-quotloan-businessquot-29035673.aspx

Subject:  Re: Mastercard doesn't work on Delta and Air Can Date:  1/17/2011  3:23 AM
Author:  caromero1965 Number:  2314 of 2323

Mastercard are in the "loan business". They make money on both ends of any tranaction but they make a killing on overdue accounts. Providing service is an expense not measurably related to revenue.

I don't think Mastercard makes money on the lending, just on the transactions. The banks who back your card make the money on the overdue accounts.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us