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 take 2% of all transactions and prey on teh poorly financed. basically your benefits are coming because some poor guy cant pay his bills or some douche bought a 55in tv he can’t afford