Comment by ptero
2 years ago
Sorry, can you explain why the high spend is important? What is the benefit of a low risk buyer having a single card vs three different cards?
Low risk is clear -- the lower the risk the more money is left, after handling problems, for the rebates and profits.
In this context, it’s important to the merchants: They want these customers, so they grit their teeth on the higher interchange fees demanded by the banks. If the banks started handing out these cards to everyone, the merchants would revolt.
Interchange. The fees go directly to the issuer not the network (which collects much smaller scheme fees). If you have 3 cards they’d almost certainly be for 3 different issuers so they’d split the interchange. Making you less valuable.
> for the rebates and profits
And salaries and pensions, etc.