The Business of Card Companies

Why Credit Card Companies Offer Welcome Offers

Ever wondered why card companies seem so generous? For starters - Every time a cardholder swipes, the card company charges the merchant a fee, typically between 1.5% and 3.5%. Spend $10,000 on your card, and the issuer pockets $150-$350 in fees.  Banks also bank on the idea that you’ll use their card consistently, ideally keeping it at the top of your wallet for every purchase. This is just the start of the reasons card companies offer us generous perks and benefits.