Then they make money frominterchange feesthat retailers pay on every purchase that a consumer charges to a credit card, frombalance-transfer fees, and from customers who don’t pay off the balance before the introductory period ends, thus having their remaining balances subject to the banks' re...
Theory and Calibrations For two decades, economic and legal academics have speculated about the impact of the fees that merchants pay for credit card acceptance. Since all customers pay the same price, the theory goes, everyone pays for the benefits that go only to credit card users. A ...
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