Profitable, why do banks do business that is not profitable?

The main profit points of credit cards are as follows: 1. Merchant rebate: For every purchase you make at a merchant, the bank or UnionPay will charge a 1-2% handling fee to the merchant, and then pay it to the card-issuing bank and acquiring bank at a rate of 721.

Allocate between UnionPay networks.

2. Penalty interest: Failure to repay or withdraw cash in time after the interest-free period will incur interest of 0.05%. What is the annual interest rate? It is more than 3 times the base interest rate.

Don’t think that no one will contribute this part. My LP has worked in a bank for many years. She can’t remember the repayment date every month and contributes very stable penalty interest (well, so I collected all her credit cards and changed them to

I used my supplementary card) 3. Handling fee income: There must be handling fees for installment car purchases, right?

Are there any fees for cash advances?

In addition to the direct income we are talking about, invisibly, using credit cards to stimulate customer consumption can increase customer loyalty and stickiness, and can be connected with some personal loans and microfinance businesses. Therefore, it is quite attractive. Of course, if you

As said, the initial investment in credit card business is huge, and the risk management costs and operating costs are very high, but these can be gradually amortized as the business scale expands. So far, it seems that banks that have done it early have basically achieved profitability.

, small banks or latecomers are either still losing money, or simply bypassing it and not doing it.

Credit card, no scale, no profit.