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[–] 22 points 2 years ago (4 children)

The interest rate is charged if you don't make your payments. Otherwise, you get rewards each time you spend which makes things a little cheaper.

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  • [–] 13 points 2 years ago (3 children)

    The “rewards” come off the backs of poor people paying these usurious interest rates.

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  • [–] 29 points 2 years ago (2 children)

    They actually cone from the charges they push onto businesses to process the payments. The interest rates are just profit

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  • [–] [S] 14 points 2 years ago (1 child)

    You’re both right. The rewards are indeed mostly covered by the processing fees, but that means after covering infrastructure expenses etc., the banks are operating at a net loss (or breakeven at best), meaning they still have to fleece someone on their interest payments.

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  • [–] 6 points 2 years ago

    Plus those businesses pass the cost on to consumers like they do with any expense.

    So ultimately, end consumers who are already being fleeced by a combination of wage theft, low wages, and high prices, are the ones who pay for everything.

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