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

They dont really, they probably break even with surcharges. But the majority of people dont pay their card off, so credit card companies make plenty of money.