Sunday, December 4, 2011
How much does the credit card company make?
Let鈥檚 say that you make $2,000 in purchases on you credit card. You pay off the statement each month 鈥?so there are no fianc茅 charges involved. Approximately how much does the credit card company make on the transactions on your account?|||The merchant pays 2 - 4 %, depending on their volume and average ticket size. This goes to the bank that processes the merchant. The bank that issued the card gets about a 1% split of this. Out of that they have to pay their cost of servicing your account including any rewards or rebate program.|||It depends on the merchant account agreement. It could be 1% to 3%.
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