One way to use a card is to swipe it with a POS machine. During this period, we don't need to deduct the handling fee for using the card, but the merchants who consume it need to deduct the handling fee. At present, the standard of credit card handling fee is about 0.65%, of which banks can charge about 0.45%, and the handling fee here is the net profit of bank profits. So the more you use it, the higher the bank's income.

2. Annual fee paid by users

Every card has to pay an annual fee. However, with the increasingly fierce competition in the credit card market, many banks have launched their own cards and implemented an annual fee-free policy. Generally, you can only handle more than six cards. But for some higher-level cards, banks will still charge an annual fee. The higher the card level, the greater the rights and interests you enjoy and the more annual fees you need to pay.

3. Full penalty interest

Most people use credit cards for capital turnover. If they can't meet the cost and bill, they will choose to pay the minimum repayment this month. Although there is no overdue at this time, the bank will charge a certain interest, that is, the full penalty interest. At present, the interest rate of credit cards is 0.5% per day. If you don't repay in time after the minimum repayment amount, you will face a huge interest burden.

4. Overdue interest

What exceeds the minimum repayment period is overdue interest, which is the so-called compound interest according to compound interest, which is an important source for banks to profit from credit cards. The reason for setting such a high interest rate is to prevent everyone from overdue. In addition, overdue will also cause bad credit.

5. Handling fee

Another function of the card is to support the withdrawal of some consumption limits, and another function is when you transfer money to the card by mistake. There is a service charge for withdrawing cash, but it must be returned on time. Therefore, this method is only suitable for the temporary turnover of urgently needed funds, which is generally very uneconomical and is also one of the channels for banks to limit their income. In addition to these, there are some card fees, loss reporting and other fees.

Generally speaking, banks can benefit from all aspects of credit card use, and credit cards can bring considerable profits to banks.