Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

Credit card firms derive almost all of their profits from those with poor credit who pay higher fees and very high monthly interest.

Free-loaders like myself with good credit pay no fees or interest and are rebated a portion of the interchange fee on each transaction.

If a credit card firm had to survive on only customers like myself, they would have to charge fees more in line with those in Australia.

In Australia only those with good credit have credit cards, and the annual fee is at least $65, more typically $120.

Needless to say no one collects a percentage of your monthly charges other than the bank. The balance of the population use EFTPOS cards, which we call debit cards here.

That's what you're missing.