Question

PLEASE HELP WILL GIVE BRAINLY!!!!

Explain how credit card companies make money on their cards. What is a credit card issuer?

Answer 1

Card issuers and networks make money in different ways. Networks typically make their money from the merchants, who pay a fee to accept electronic payments from credit cards. The issuers make money from the consumer by charging them interest and fees according to their credit card agreements. Credit card issuers are financial institutions that provide cards and credit limits to consumers. Issuers manage numerous features of credit cards, from the application and approval process to distributing cards, deciding terms and benefits (such as annual fees and rewards), collecting cardholder payments and more.

Answer 2

Explanation:

1st question) they make money thru interest, processing fees (which is like a little tax on businesses for accepting credit) and fees charges to cardholders (some charge at ATMS for withdrawal etc).

a credit card issuer is a bank or credit union that supplies the credit card to the consumer. ex: capital one, citi, bank of america.