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Originally Posted by SpaceSquad Why did they put a $1000 limit on your card? Simple...they want you to overspend and owe them lots and lots of money. It's how they stay in business. | Actually, credit card companies make their money from two main sources. The first and biggest, is that they charge the merchant a commission on each transaction and that transaction rate can vary from 1% for larger stores and up to 5% on certain cards for smaller retailers. That is why smaller stores will probably be more prepared to offer you a discount should you ask to pay for your purchase in cash rather than on plastic. The other source of income for credit card companies is like you stated the interest that is charged on overdue and outstanding balances.
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