How can citibank possibly be making money on their 5% card?

[dullard]

Originally posted by: Baked
Because most people pay off just the minimum each month. CC companies make money on the 25%+ APR.

Wrong on both parts. 55.3% pay in full, and that number has been recently growing.

 

[FrustratedUser]

I need to check out this card. I can easily max out the $300 reward/year, it only takes $6000 to do it.
Getting tired of MBNA making the rewards worse every year and they increase interest too. I've been a loyal customer starting out at 6.9% APR, now it up to 11.% variable APR.
:|

 

[mugs]

Originally posted by: dullard
My wife went through it all with her business. So I give personal experience and I provided a link. That was the ATOT standard for proof up to now. I guess not anymore.

You posted a link to paypal... that's not exactly a typical merchant account, nor do they offer B&M services as far as I know. I didn't see you mention your wife before. Is her business online or B&M?

 

[dullard]

Originally posted by: mugs
You posted a link to paypal... that's not exactly a typical merchant account, nor do they offer B&M services as far as I know. I didn't see you mention your wife before. Is her business online or B&M?

B&M, she owns a ballroom dance studio. I posted the paypal link since it clearly discusses the typical merchant account policies and charges (ignore the paypal charge portion of the link). Biased, yes. But it was the best link I could find in the spur of the moment.

 

[HardcoreRobot]

Originally posted by: jaedaliu

Originally posted by: Thegonagle
Obviously, they make money on interest, but one thing that's not obvious to most consumers is that the credit card companies keep an easy 2-3% off the top of every transaction. (Which is why 5% cash back seems extra nuts; 3% is more common, and more reasonable.)

The 1% they offer on everything else will still net them money. AND they're making money on interest for people that keep a running balance.

chase has a card that's 5% on gas station, super market, drug store, and home improvement store purchases. looks like they just one-upped citi.

Which Chase card is this?