First, bank credit card swiping fees

In the beginning, the biggest function of a credit card is to swipe card purchases. We all know that banks will not charge handling fees for card swiping purchases, but banks do Merchants who pay by card charge a handling fee of 0.6. So of course the bank wants to make it easier for you to swipe your card by increasing your credit card limit and increase the amount of your card swipe, thereby obtaining more fee income.

Second, interest income generated from credit card-related businesses

Although most people’s card purchases are repaid on time during the interest-free period of the credit card, banks will still pass Various businesses charge very high interest outside the interest-free period. Just like the credit card installment we often mention, the actual annual yield is between 13-18; there are also credit card installments often used by some people, which have no interest-free period and charge interest at 0.05 of the daily cash withdrawal amount. The interest rate is It has also reached 18; some people borrow money with credit cards, and the interest rate is also around 15.

Thirdly, for the benefits of various punitive measures for credit card holders’ default, the biggest one is the overdue credit card payment. Once the credit card consumption is overdue, there will be punitive interests such as liquidated damages and penalty interest. The cost is around 15-24.

Fourth, of course, credit cards will also have some annual fees, but this is only the smallest income.