Quote:
Originally Posted by Nlkko
Bank generates revenue from merchant transaction fees. Interest rate they collect is nowhere near the fee they generates. As a banker, I would love my client to pay off my cards everytime so I don't have to end up with bad debt. You will notice bank will increase your credit limit if they see you have a history of paying off balances on time. Increase purchasing power = More spending = more transaction fees they collect.
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12-18% unpaid interest rates would far outweigh any commissions made in transaction fees.