How do credit card companies afford to “give cash back”? Like how does the process work?
In:
They’re charging you interest on any charges that aren’t paid off at the end of the cycle, and it’s significantly more than the 1 or 2% cashback you get.
Additionally, they take an interchange rate from the vendor, usually 2-3%, so they’re making money even if you pay off the complete balance each time.
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