By Admin 
Credit cards discounts: Nowadays, people use plastic money i.e. credit card for everything from shopping to loan. Gradually, plastic money is replacing cash and youth are used the most. The most important thing is that if you do not have money now, then you do not need to kill your mind, because with the help of this you can buy anything and pay later.
Not only this, these credit card companies also offer you a lot of cashback offers and full discounts on using their card continuously, but have you ever thought that what do these companies benefit from giving such discounts and how do banks earn from them? Let’s know about this.
How to earn bank with credit card
1. Merchant fees
Whenever you use a credit card to pay, banks charge merchant fees. Merchant fees are a kind of fee that banks charge from a merchant. This fee is charged as the bank’s infrastructure, security and transaction processing expenses. Usually this fee is between 2 to 3%.
2. Interest on credit card
When you buy someone on the same loan from your credit card, the bank gives 45 days to return this money. For these 45 days, the bank does not charge any interest on this money, but even after the end of the date date, if no one returns the money to the bank, the bank starts imposing interest on it. This interest rate is between 30 and 38 percent annually. Apart from this, if you make EMI, then banks also charge a lot of interest on it.
3. Marketing Tie Up Charge
Now talk about discounts, then banks also charge marketing tie up from many companies. That is, you bought some goods from a company and they gave you a discount on using a special bank’s credit card in payment mode. In such a situation, brands try to reach more customers through these discounts. When you get exemption on buying something from a credit card, then the next time people consider the use of credit card better for discounts.
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