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Joined 2 years ago
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Cake day: June 9th, 2023

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  • A credit card, in the US, has a transaction fee for the vendor, 1-3% of the purchase price, sometimes with a flat few cents fee on top.

    The consumer has no transaction fee, but does pay interest (around 28% annually) if they don’t pay off the full balance every month (if they do pay it in full at the end of the month, there is no interest charge). Usually there will be a 1-2% cash back for the consumer as well.

    Some credit cards also have an annual fee for the consumer. These generally have higher cash back rewards and higher vendor transaction fees than those that don’t.