Comment on Credit card company rejects customers with too-good credit scoresparentComments−ars16yThey are borrowing money each month, without paying interest on it, so it does cost the credit card companies money.−Aaronontheweb16yLosing money in its time-value. Gotcha.Edit: I thought they still made money off of the vendor fees though?−ars16yThey do yes. Between 0.5% and 3%.It costs them some money to process an account though, send bills, handle payments etc. If someone is charging reasonably frequently then they are still profitable.
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They are borrowing money each month, without paying interest on it, so it does cost the credit card companies money.
Losing money in its time-value. Gotcha.
Edit: I thought they still made money off of the vendor fees though?
They do yes. Between 0.5% and 3%.
It costs them some money to process an account though, send bills, handle payments etc. If someone is charging reasonably frequently then they are still profitable.