What is the profit model of credit cards and what do they rely on to make money

The profit model of credit cards:

1. Interest income is the credit card holder’s interest on unpaid credit cards. Interest paid on the balance;

2. 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;

3. Annual cardholder fee That is, the fee paid by the cardholder to the card issuer for obtaining the right to use the credit card;

4. Other handling fees and income include handling fees and income generated from various other credit card services;

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5. Special merchant rebates are fees charged by the acquiring bank to special merchants for providing transaction processing and assuming credit risks;

6. Deposit interest income is derived from the deposit accounts of special merchants The deposit interest income obtained from the business;

7. Other income is the income from renting POS and card press machines.

Extended information:

Credit card advantages:

1. You can use overdrafts without deposits, and you can enjoy an interest-free period of 20-56 days to repay on time. No interest is charged on the payment (most banks will charge an interest of 50,000 cents on the day of cash withdrawal, as well as a 2% handling fee. ICBC charges no handling fee for cash withdrawal and only charges interest).

2. Swiping your card when shopping is not only safe and convenient, but also provides points for gifts.

3. You can enjoy discounts when using the card at the bank's designated merchants.

4. Accumulate personal credit, add integrity records to your credit file, and benefit from it throughout your life.