Today I saw them offering credit cards. Why do companies like this that have nothing to do with finance and where you probably only go once or twice a year offer credit cards?
In: Economics
Brand loyalty and little if no charges from credit / debit processing fees.
The company hopes (and has data to prove) that if you hold a credit card that says “X” on it, you’ll be more prone to using that card at that place. Also, when you run any credit or debit card as payment, the retailer gets charged a processing fee. The fee depends on the card. So if the retailer offers their branded card, the retailer will not incur charges or fees on their own card. Thats why gas stations do it. Their profits get eroded away quick with fees from card processing .
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