I thought that credit cards still made money off people who pay their bill on time every month. They charge the vendor 8 or 10% or whatever per transaction by credit card.
It's closer to 3% and if memory serves that was the original plan to make money when credit cards come out. They didn't actually expect people to borrow money at their stupid interest rates, they just wanted 3% of every point of sale transaction they could get their hands on sounds like a heck of a deal to me for not really
doing anything other than letting some computers push electronic funds around.
Don't get me wrong, I don't have a problem with them making a buck at it. You can't do that kind of thing for free and there are some really great things you gain just by letting them suck up 3% of every purchase. Once the transaction is done nobody can steal that money. Well, at least not some two-bit crook with a Jennings .380. Less incentive for a robbery (not that you'd know it by watching the news) less chance of theft by store employees, etc.
It was really a wonderful idea but then they learned what we'd actually put up with. Overdraft fees, instant late payment charges, jacking interest rates all around on a whim, etc. And part of the reason we put up with it is all the nice incentives they give us for using the card above and beyond the short term loan aspect and not having to carry cash. Sky miles, cash back rewards (AMEX started this and they have always charged a higher percentage of the transaction than MC and Visa, which is why some places won't take them).
Now people are sick of it and used Congress to whack them on the noses.
They can still jerk with people that are irresponsible too. Miss a payment and all bets are off on new purchases.