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A comment on More Americans are using ‘buy now, pay later’ services to pay for groceries. Parent comment

Re:More Americans are using ‘buy now, pay later’ services to... by soco on Friday March 24, 2023 @12:10PM (#35291155)
Cashback is not really a thing around me (Switzerland) and other rewards are just practical jokes - like overpriced black socks subscriptions offered slightly less overpriced. Yet credit cards thrive.
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Re:More Americans are using ‘buy now, pay later’ services to... by crazygringo on Friday March 24, 2023 @01:06PM (#35292122)
Yes but interchange fees are far lower in Europe.

In the US they're around 2%. In Europe they're more like 0.3%, which is why cashback/rewards aren't a thing.

My point is that interchange fees aren't where credit cards make money, it's on the interest of people who don't pay in full.

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Re:More Americans are using ‘buy now, pay later’ services to... by medvezhenok on Friday March 24, 2023 @01:31PM (#35292574)
Some cards like AMEX Gold/Platinum don't allow you to carry a balance at all, and make most of their money via interchange fees.

There is a spread between rewards provided and actual fees (fees are closer to 2.5-4%, rewards usually top out around ~2%)

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