Every bank business has its own profit driver as a prerequisite for business development, and credit cards are no exception. A major source of profit for credit cards today is interest income on rollover accounts. A rollover account is the balance shown on the statement that has not yet been fully paid off by the cardholder. For example, statistics from relevant authorities show that in the second quarter of last year, there were nearly 9 million credit cards in Hong Kong, accounts receivable was 53.7 billion, and transfer accounts averaged 26 billion. Based on the current monthly rate of 2% In terms of interest, the credit card market has a potential interest income of more than 6 billion every year.

The credit card business is an important product and source of profit in the retail financial business. 80% of Bank h's profits come from personal business, and 60% of personal business comes from credit card business. Credit card business may become the main platform for commercial banks' personal financial management business. Industry insiders pointed out that in the next few years, credit cards will lead to a reshuffle of commercial banks.

As a special financial product and a modern financial tool, credit cards are an internationally popular advanced settlement method, payment tool and novel consumer credit method, and are increasingly favored by people. The issuance of credit cards gives banks a new means of gaining deposits from special merchants and credit card customers, which is conducive to expanding bank transfer settlement business and increasing the source of bank credit funds, thereby obtaining more interest and accelerating social liquidity. Turnover speed. In addition, due to the use of credit cards, cash transactions are replaced by transfer settlements, which replace a certain amount of currency in market circulation, reduce the amount of currency issuance, and reduce the funds the country spends every year on currency printing, allocation, transportation, warehousing and release. The issuance and use of credit cards free cardholders from the inconvenience and risk of carrying large amounts of cash, and they can also easily obtain bank loans through overdrafts. As a special merchant, due to the credit guarantee of the credit card issuing bank, the special merchant can safely provide cardholders with goods and services, thereby expanding the sales volume of goods, reducing the workload of collection and payment, and simplifying payment, The process of accounting and closing.

There are three ways to make money from credit cards: One is the huge overdraft interest on credit cards. The "Bank Card Business Management Measures" stipulate that compound interest will be charged on credit card overdrafts on a monthly basis, and simple interest will be charged on quasi-credit card overdrafts on a monthly basis. The overdraft interest rate is 0.05% of the daily interest rate. Calculated in this way, the annual interest rate is as high as 18.25%. , much higher than the current ordinary loan interest rate; the second is the handling fee withdrawn from the special merchants. According to regulations, commercial banks handling bank card acquiring business should charge no less than 2% of the transaction amount from hotels, restaurants, entertainment, tourism and other industries, and no less than 1% of the transaction amount from other industries; thirdly, the annual fee for credit cards fee. Different commercial banks charge different annual fees to credit card holders, ranging from tens to hundreds of yuan.