Every time people use their credit cards, the bank has to send the money to the merchant at some point. Most people pay their CCs at some point but while the banks wait for that, how are they able to credit the merchant?
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First, the credit card company pays the merchant. The merchant pays the credit card company (2-5%, or a flat fee, or a complicated arrangement – the merchant is happy to take this deal since handling cash is much more expensive).
Then, you owe the credit card company. Credit card companies are made of money and would, in fact, prefer if you were a bit late on your payments (but not very late!) or if you only paid their minimums so that they can charge you interest and fees for the rest of time. CC companies would lose a lot of their income if everyone paid them in full at the end of the month. Some of them might even go bankrupt if we were all so lucky and responsible.
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