eli5 How do credit card companies make money out of people that pay their cards in full before the billing cycle and still get rewards?

Question

eli5 How do credit card companies make money out of people that pay their cards in full before the billing cycle and still get rewards?

In: 808

Answer 1

“Deadbeats.”
That’s the actual term used In the industry for people who use their credit card and pay their bills on time.

They call us “deadbeats.”