How do VISA and MASTERCARD make money?

aspire · 06-22-2007

I am curious to understand as to what is source of income for both of these companies i.e. the business model.

Jaybee · 10-25-2007

They make business with your interests, APR, late fees, debt, etc.

maddy · 11-05-2007

Basically the credit card comapnies charge you with a heavy interest after the grace period is over and some even charge annual maintenance charges from customers

Jerlene · 11-26-2007

Exactly. But it's how all companies make their money.

3500amonth · 01-18-2008

They are paid a percentage of the bill usually around 1.5% and this is also paid to the cardholder's bank so they can make money even if you pay bill on time.

apples · 02-02-2008

They get a certain percentage of total sales closed as a result of using their cards. You are enticed to spend more because they get a cut from these spendings.

forumguy · 02-06-2008

I am really surprised with your question. As the credit card companies like visa are mastercard are ripping off money from the customers in the name of interest and other charges, and they earn a lot of money from it and they even get some percentage from the sellers too.

06-22-2007	#1 (permalink)
aspire Senior Member Join Date: Jun 2007 Posts: 106 Rep Power: 2	How do VISA and MASTERCARD make money? I am curious to understand as to what is source of income for both of these companies i.e. the business model.

11-26-2007	#4 (permalink)
Jerlene Senior Member Join Date: Mar 2007 Posts: 1,167 Rep Power: 3	Exactly. But it's how all companies make their money. __________________ 1 \| 2 \| 3 \| 4 \| 5 \| 6 \| 7

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10-25-2007	#2 (permalink)
Jaybee Member Join Date: Oct 2007 Posts: 48 Rep Power: 0	They make business with your interests, APR, late fees, debt, etc.

11-05-2007	#3 (permalink)
maddy Member Join Date: Nov 2007 Posts: 50 Rep Power: 1	Basically the credit card comapnies charge you with a heavy interest after the grace period is over and some even charge annual maintenance charges from customers

01-18-2008	#5 (permalink)
3500amonth Junior Member Join Date: Jan 2008 Posts: 10 Rep Power: 0	They are paid a percentage of the bill usually around 1.5% and this is also paid to the cardholder's bank so they can make money even if you pay bill on time.

02-02-2008	#6 (permalink)
apples Junior Member Join Date: Feb 2008 Posts: 10 Rep Power: 0	They get a certain percentage of total sales closed as a result of using their cards. You are enticed to spend more because they get a cut from these spendings.

02-06-2008	#7 (permalink)
forumguy Junior Member Join Date: Feb 2008 Posts: 12 Rep Power: 0	I am really surprised with your question. As the credit card companies like visa are mastercard are ripping off money from the customers in the name of interest and other charges, and they earn a lot of money from it and they even get some percentage from the sellers too.

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