Why do credit card companies give out rewards?

Is it because more people are likely to get into debt, or because those companies want to dominate financial transactions?

Why do credit card companies give out rewards?

The bank still makes money from you due to the transaction fees that they impose on the seller. transaction fees on MC and Visa have gone up in the 2-3% range on every transaction. MC and Visa give you 1% back on everything. Special cards can give you up to 5% back on certain items, like gas or cell service. I still make money on them since I pay in full each month.

Why do credit card companies give out rewards?

They want you to spend spend spend and not pay it back..

Why do credit card companies give out rewards?

Credit cards give out rewards for the same reasons that stores have sales. It is to drive the usage of their cards up...and thus their overall profits.

Why do credit card companies give out rewards?

they want u to owe alot so you have to pay more interest charges

Why do credit card companies give out rewards?

So you don%26#039;t feel so bad paying the bill....

Please answer the question:

http://answers.yahoo.com/question/index?...

Why do credit card companies give out rewards?

the rewards are minor compared to the interest charges. many are not applicable unless you carry a balance

Why do credit card companies give out rewards?

what they call a reward I call...%26quot; taking me for an IDIOT!%26quot; They send me a 8 dollar check and only thing......I%26#039;ll be signed up to have $10.00 a month charged to my card? Real tough decision. Do I take the 8 and pay them 120 or do I throw away this reward envelope?

Why do credit card companies give out rewards?

customer loyalty. If you are getting %26quot;cash back%26quot; you are less likely to change card companies.

Why do credit card companies give out rewards?

The best reward is to pay the full amount off your card every time you use it and incure no interest. I have the convenience of credit but no interest to pay.

Why do credit card companies give out rewards?

Credit card companies make their money from interest and fees.....in that order.

If you are rewarded a few pennies per dollar spent, they can realize 15-22% interest per month on your balance owed......Paying you 8 cents to get $1 back isn%26#039;t such a bad deal

Why do credit card companies give out rewards?

Christine is right. It%26#039;s all about customer loyalty...trying to be %26quot;different of better%26quot; than everyone else in the credit card industry. Some customers value them highly, others don%26#039;t. Marketers are always trying to find ways to get more customers and KEEP them.