aspire

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

Jaybee

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

maddy

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

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

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3500amonth

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

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

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.

william23

I don't understand how can make money master card.

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alice24

Mastercard and Visa companies earn money by putting our money into stock and similar markets where there are most of the time gains. We give them a whole big chunk and they put it in further investments and earn in billions and trillions. Just imagine how much money they are getting from customers for a fixed period and then how much they are earning by putting this in investments.

Gamernz

I believe they make money from investments along with interest, with some smaller credit companies the money you are loaned (on the card) is actually other people's investments.