Doesn’t 3% cash back mean that they give you 3% back on what you spend? Example you spend $10000 you get $300 back? Losing money?
If you use your card to pay for something and pay the credit card company back on time all year long do you have to pay some membership fee or yearly fee?
#1 by Books on August 16, 2009 - 4:01 pm
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You might make all your payments on time but there are plenty of people who don’t. There are also plenty of people who pay high interest rates even when they aren’t late on their payments.
Some cards have yearly fees and some don’t. The fee is usually charged even when you use the card well but some companies may not charge you the fee if you charge over a certain amount during the year.
#2 by snpuck on August 18, 2009 - 9:30 am
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The merchants who accept the credit cards actually end up paying this fee. They charge more on the interchange fees to us merchants for these types of cards. This is why you see discounts for cash. It typically costs, on average, 2% of the total to the merchant to accept the credit/debit card, but depending on the card, it can be higher.
#3 by Doctor Deth on August 21, 2009 - 3:36 pm
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credit card companies make they money from charging merchants a fee every time they accept a credit card for payments and they make their BIG money from people who carry balances – 20-30% a year on most people anymore