How banks make money on your debit card

Debit card is like plastic money without need to carry cash. Every time swipe, you use funds which already available. There are few ways how bank make money on every time debit card used. Banks earn less on debit cards compared to credit cards revenue. In table below comparison of debit vs credit cards parameters. […]

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How banks make money on your credit card

Credit and debit cards look similar but influence differently on wealth utilisation. Credit cards issuing companies mastered a few main money making strategies: Interest rate applied on late payment Merchant interchange fees (mostly 2-5% of transaction value) Annual fees ($0 – $5000) Monthly fees ATM cash withdrawal (higher interest on default) Balance transfer Foreign transaction […]

Debit vs credit card basics

A few decades long discussion,over which type of card better fuelled by massive banks ads. For instance debit card better for your future financial wealth that credit card. Debit card technically is digitized form of cash which you already earned. Credit card is line of credit which you have to repay to avoid personal financial […]

Mastercard Inc business model

Mastercard Inc is international financial service provider with headquarter in New York, established 1966. IPO started in May 2006 priced 39 dollars per share traded in New York Stock Exchange under code “MA”. In 2014 stock split 1:10. Outstanding shares 1,020,931,000 with market cap 205 billion dollars and 192 dollars price per share (Jan 2019). […]

Visa Inc business model

Visa Inc is global payment technology company established in 1958 headquartered in California. It’s second largest payment network after China Union (protected by government of China). As per Forbes magazine without China UnionPay , Visa Inc is biggest worldwide. In Match 2008 IPO (initial public offering) with 44 dollars per share. Traded in New York […]

How Visa, MasterCard, American Express make money

Digital payment era reshaped by payment networks like Visa, MasterCard, American Express and China Union. Due to Forbes market share without China Union data. Visa Inc is market leader with 52% market share. MasterCard and American Express each 22%. Visa Inc growing faster because of balanced expansion strategy based on competitive pricing and high ticket […]

Cashless countries

Electronic payment options revolutionized cashless payments world wide. But homosapiens used cashless payments in form of barter since first exchanges happened. Usage of cash considered complicated in many ways: Impossible online payments by cash Cash could be used as virus spreading tool If lost almost impossible to find Not resistant to water, fire, insects Danger […]