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

Shops have to pay between 2%-4% per transaction. Some shops by me will give you that percentage off your bill if you pay with cash or check.