How American Express make money?

American Express Inc is financial services provider with worldwide presence. Established in 1850,headquarter in New York. IPO 1978 and listed in New York Stock Exchange. In Fortune 500 ranked number 86 with 181 billion in assets and around 120 million active cards. Price per share $99 (January 2019). Sources of revenue comes from 2 main […]

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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 […]

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). […]