- Centurion Member
- Posts: 186
- Joined: Tue Feb 19, 2013 5:22 pm
- Location: USA
This applies to every card not just Amex. If you look at the big picture, How many people pay in full vs. min balance/mb+? Also, I would think anyone lending money will feel negatively if you owe a balance, because yes you collect interest, but there is also a chance that it won't be paid back fully (i.e. bankruptcy) then they only collect a fraction of what they originally loaned.
Mathematically for example:
If 1 out of every 10 people pay in full, out of 100 people, they still collect interest from 90 people. You also have to consider the different APRs. Some people may just pay the prime, others may have higher APRs.
Another thing is that banks get more interest from the other types of loans they offer other than credit cards. Personal, auto, mortgage, etc. is where they really make revenue.
As for the swipe fee, my friend owns a small boutique and she uses one of those square wallet things that plugs into your phone. Amex charges 2.75%. I don't know if having an actual register card terminal vs. phone app makes any difference in fees tho...