The profit model of the credit card business can be viewed from two aspects: the issuing bank and the acquiring bank:

Interest income is the interest paid by the cardholder on the outstanding credit card balance; information exchange Income is the fee paid by the acquiring bank to the card issuing bank accounting for a certain percentage of the transaction amount of the special merchant; the cardholder annual fee is the fee paid by the cardholder to the card issuing bank for obtaining the right to use the credit card; other handling fees and income include Fees and income generated from various other credit card services, such as cash advance fees, loss report fees, fast card issuance fees, replacement transaction password letter fees, etc.; the capital cost is the credit card asset portfolio of the bank that the card issuance bank has The interest costs that must be paid for the outstanding balance of funds; losses include bad debt losses, credit card fraud losses, etc.; service fees are the costs incurred by the front-end and customer contact; transaction processing costs are the costs incurred by the backend for customer service.

Specialized merchant rebates are the fees charged by the acquiring bank to special merchants for providing transaction processing and assuming credit risks; deposit interest income is the deposit interest income obtained from the deposit accounts of special merchants; other income That is, income from renting POS and card presses, etc.

Of the profits from the credit card business, 78% comes from credit interest income, 10% from interchange fees, 2% from annual fees, 4% from cash withdrawal fees, and 6% from late payment and other income.

There are also some units that focus their profits on defaults and excessive fines, thus forming a new credit card business model. This profit model is a credit card with a low credit limit issued by the card issuer for consumers who have difficulty applying for consumer loans. On the one hand, a low credit limit causes cardholders to easily default and exceed their limit, thereby increasing fine income; on the other hand, a low credit limit can reduce personal and overall credit risks.