A lot of someones get a piece of that 3%. Unless he’s using the card for a lot of purchases they are losing money on him.
Wrong.
The banks all offered free checking and credit/debit accounts to people, making all their money on the back end, from the merchants who accept checks or credit/debit cards.The merchants paid fees to the banks, to process checks, credit and debit cards.Naturally, those costs are passed on to the customer.
What changed?
The government has stipulated the rates banks can charge merchants for transactions, and banks have introduced new fees to checking account members.
Banks are like insurance companies.
They charge fees to guarentee transactions, absent the exchange of cash.
My father literally pays everything on his VISA and then writes a check at the end of the month. They raised his interest to 29.99% last year. Why?
He is never late and they are making plenty of cash off him on merchant fees alone. Its just stupid.