What is the real purpose of banks to issue a large number of credit cards? Make money? Banks recruit a large number of card clerks, issue a large number of credit cards, and give away a large number of free credit cards; Banks do this for their own interests, otherwise they are also businesses that open their doors to do business, and it is impossible for banks to do business at a loss. They just use a large number of credit cards to raise fish and catch big fish in the long run. People who use cards are fish, and banks are fishermen.

Banks issue a large number of credit cards for the following reasons:

(1) Earn credit card interest

With the large number of credit cards issued, many people now have three credit cards in common; Let the cardholder spend in advance from the credit card, overdraw the consumption, and then encourage the cardholder to pay in installments. Once the cardholder repays in installments, interest will be generated. The bank will use the cardholder to pay in installments to make money. This is the main reason why the bank issues a large number of credit cards.

(2) Earning credit card fees

Anyone who has used a credit card knows that if you want to withdraw cash from a credit card, you need to charge a certain income fee, and there is a minimum charge; The income fee for cash withdrawal varies from bank to bank, and most banks charge 1% of the cash withdrawal amount, which is one of the main reasons why banks issue a large number of credit cards.

(3) Earn the annual credit card fee

I believe everyone knows that credit cards are free, but as long as they are activated, they are free. Generally, the annual fee for ordinary credit cards is one year in 2 yuan, the annual fee for gold cards is 1 yuan, and the annual fee for platinum cards is between 1 yuan and 4, yuan. If you think about it, I will pay an annual fee of 2 yuan according to the most common credit card. With 1 million credit cards, the annual fee income will be as high as 2 billion yuan, which is earned for nothing. However, if the cardholder wants to avoid the annual fee, he/she needs to swipe his/her card six times a year. Even if you spend six times by swiping your card, the bank still has commission income from POS machines, so it is a sure bet for the bank to issue credit cards.

(4) Earn dividends from POS machines

Cardholders use POS machines to swipe their cards. Although users don't have to pay the card-swiping fee, POS machines will earn a certain fee from merchants, and banks that use POS machines to swipe their cards will also get dividends, that is, commissions, which are generally 3% of the card-swiping amount; This is also the real reason why banks give away POS machines for free.

(5) Earning other expenses income

The most typical ones are credit card replacement fees, overdue payment fees for credit cards, SMS fees, other value-added fees, and other expenses such as credit card consumption, which are all bank income.

In a word, the purpose of mass issuance by banks is profit in the final analysis, that is, to make money. Otherwise, why would banks spend a huge amount of money to issue credit cards? Do you really want to give them to users for free? Don't even think about it. The real purpose is to think about users' money.