Profit model of credit card business:
Interest income is the interest paid by the cardholder on the credit card balance.
Information exchange income is the fee paid by the acquirer to the issuing bank, accounting for a certain proportion of the transaction amount of the special merchants; The cardholder's annual fee is the fee paid by the cardholder to the issuing bank in order to obtain the right to use the credit card; Other expenses and income include expenses and income generated by other credit card services.
The rebate of special merchants is the fee charged by the acquiring institution to the special merchants because they provide transaction processing and bear credit risks; Deposit interest income is the deposit interest income obtained from the deposit account of special merchants.
Other income is the income from renting POS and card pressing machines. Of the credit card business profits, 78% comes from credit interest income, 10% comes from exchange fees, 2% comes from annual fees, 4% comes from cash withdrawal fees, and 6% comes from late fees and other income.
Extended data
Credit card function:
1. Cash deposit in advance is not allowed. You can enjoy an interest-free repayment period and can repay in installments (minimum repayment amount). Join VISA, MasterCard, JCB and other international credit card organizations, which are universal.
2. It is one of the fastest developing financial services, and it can replace the traditional cash circulation in a certain range.
3. It has both payment and credit functions. Cardholders can use it to buy goods or enjoy services, and they can also use credit cards to obtain certain loans from card issuers.
It is a high-tech product integrating financial business and computer technology.
5. It can reduce the use of cash currency.
6, can provide settlement services, convenient shopping and consumption, enhance the sense of security.
7. It can simplify the collection procedure and save social labor.
8. It can promote commodity sales and social demand.