akugami
Diamond Member
- Feb 14, 2005
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Originally posted by: JLee
Originally posted by: Caveman
Originally posted by: sapiens74
We spent 70k in the last year on our AMEX card, paid everything when it was due so I know they made money off us.
Actually, you probably made money on them... Especially if you had no annual fee...
You got to use their money for free... If you paid it off on time, they couldn't charge you late fees or interest... They "hope" people cannot pay balances in full... They count on it...
Are you aware that merchants pay significant fees to Visa/MC/Amex?
My company has massive credit card processing fees due to the amount of cards we receive. I can only imagine what the companies like Newegg that do 90% of their business through cards incur.
Basically there is a two fee system. One is a per transaction charge which ranges from 6 cents to 25 cents depending on card, transaction type and also based upon your business' standing in terms of credit worthiness and volume of business. The other is an interchange charge which I believe was a percentage of the money processed.
With 70k in purchases by sapiens74, I can assure you that AMEX made a very nice fee from merchant service fees alone. If you incurred finance charges from interest this is even better from the credit card companies' perspective.