How do banks in India make profit from credit cards?

[cowcoconut]

Hey,
I watched this video by CNBC titled "Who Actually Pays For Credit Card Rewards?" but it seemed only relevant for the U.S. market where many of the lower middle class has running credit card debts. Most fees seem to be forex, annual card and over-the-limit fees. I don't think most of us here pay any of the three fees.

So I wanted to know how banks in India actually profit in this game or if their plan is just to get us to take a credit card and devaluate it later.

 

[Tejo]

Hey,
I watched this video by CNBC titled "Who Actually Pays For Credit Card Rewards?" but it seemed only relevant for the U.S. market where many of the lower middle class has running credit card debts. Most fees seem to be forex, annual card and over-the-limit fees. I don't think most of us here pay any of the three fees.

So I wanted to know how banks in India actually profit in this game or if their plan is just to get us to take a credit card and devaluate it later.

EMI's ... interest is the income.

Gift card Promotional sale at discount ..... the Unused and left over balance, they have expiry too.

MDR ... interchange fee

Card account ..... X-blood drinking charges

............................................

Also on festive sales, stock clear up sales both merchant and banks contribute to attract us.

Merchants wants to earn X amount (high) by selling X(high) quantity with Y price (with less margin)

Banks too give discounts with e-commerce partnership.

Note:
• The Instant discounts given by bank is not only contributed by the bank, the merchant, product brand and market place too contribute.
• If @Vasuki Established a venture, it acts as wholesaler of several appliances then, @Vasuki got loan with help of NPCI @Abhishek012 then NPCI offers discounts/cashback on @Vasuki venture products at amazon or flipkart or other market place or as per (margin) or @Vasuki requirements or as per product brand.


I don't wish to write a Detail Textbook, Bye