Quote:
Originally posted by Andy
And Re: Synic saying "The credit card company doesn't make any money if you pay off your debt every month," that isn't entirely true. Credit card companies still charge every store you purchase at a small transaction fee and then a flat % of the purchase. (MC and Visa charge roughly 2.5%, and AMEX about 3.5%. That's why a lot of places won't take American Express and MC/Visa like having those annoying commercials to remind us about that fact constantly.)
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Actually, this only applies to American Express, Discover and JCB. They fund for both the cardholder side and the merchant side of the transactions. so they see both profits for the cardholders and the merchants. With Visa and MasterCard they are funded by a Credit Card Processor who has no dealings with the card issuing bank other than the initial Authorization of the sale. The merchant processor funds the merchants for the deposits and receives payment from the individual banks via Visa/MC. The only people that are paid on both sides of the sale is Visa and MasterCard, unless the bank itself owns both the merchant's account and the card itself.