The trend of marketing through credit cards is increasing rapidly in the country. Not only this, credit card companies also come up with different offers to woo the customers. But have you ever wondered how these companies that offer so much earn money from credit cards? Today we will tell you how these companies used to earn from credit cards.
Airport lounge free
Let us tell you that some credit cards have airport lounge access. And lounge access of the railway station is also given. Sometimes customers have to pay Rs 1 for this access, although sometimes it is also free. But now again the same question arises that how will the credit card companies earn with so many offers.
Earnings come from interest and penalty
Let us tell you that after taking a credit card, many users are not able to pay their credit card bill on time. Due to which interest and penalty is charged on it. Apart from this, companies also charge customers for shopping on EMI. In this way, credit card companies earn big money.
Different fees
Some credit card companies charge their customers for annual and Also charges renewal fees. However, most companies waive annual and renewal fees after spending a certain limit annually. Apart from this, companies also earn from balance transfer fees, late payment fees, cash advance fees, foreign transaction fees and some other fees. According to this, companies earn big money because they keep charging different charges from time to time.
Also read: This is the world’s smallest plant, a microscope is needed even to see it.
