1. Interest income and late fees
Interest income is the interest paid by the cardholder on the outstanding balance of the credit card, which is the main part of the credit card income. Credit card repayment can be divided into full repayment and minimum repayment. If the debt is paid off during the interest-free period, the bank will not charge interest, otherwise a late fee will be charged at the rate of five ten thousandths of the daily interest (annualized 18%, with monthly interest compounded). The proportion of late payment fees will be uniformly stipulated by the central bank, which is 5% of the unpaid part of the minimum repayment amount.
2. Installment fee income
Simply put, the installment fee is the fee paid by the cardholder to purchase the goods in installments, which is similar to the intermediary business of interest income. Therefore, some banks include it in interest income for statistical management, which is another big income besides interest.
3. Credit card fees paid by merchants
The credit card fee paid by the merchant is also the commission income mentioned above. Customers swipe their credit cards when they buy things, and merchants have to pay a certain percentage of the transaction amount to the bank as a service fee.
4. Annual fee
In addition to the cost of the card itself, a credit card also includes related expenses brought by design, express delivery and marketing. From the general situation of the whole industry, the cost of a credit card is about 150 yuan. If the cardholder does not activate, this 150 yuan is basically wasted, so the bank will charge the customer an annual fee.
5. Cash withdrawal fee
Cash withdrawal fee refers to the fee charged by the bank when you deposit more money in your credit card and take it out at the counter or ATM. Some banks have reduced the cash withdrawal fee, which accounts for a relatively small proportion of credit card income.
Extended data
Credit card is a non-cash transaction payment method and a simple credit service. Credit cards are issued to cardholders by banks or credit card companies according to the credit and financial resources of users. Cardholders do not need to pay cash when using credit cards, but will repay them on the settlement date. Except for some credit cards combined with financial cards, credit cards are different from debit cards and ATM cards, and credit cards will not directly deduct money from users' accounts.
References:
Baidu Encyclopedia-New Credit Card Regulations