How does my credit card company benefit if I get rewards but never carry enough of a balance to owe interest payments?
In: 2
Aside from the others who said “the retailer pays a fee too” ….
I think the bigger answer is that very few people carry zero balances. I always pay off every month, been doing so for 10+ years. And yes, I reap the benefits of cash-back rewards.
But I think I’m in the minority. So if MOST people carry balances, it’s still profitable even if a handful do not.
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