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PIF profits

Epic Contributor

Re: PIF profits

It does not make them more money if they are visa!
But amex built there empire on pif, it's not until recently they have been getting into trouble because of revolving debt growing, something amex has never really had with there customers in the past.
Message 11 of 13
Moderator Emeritus

Re: PIF profits



turbowrx wrote:
So how does PIF make them more money?


It probably doesn't make them more money in actual dollars, but it does make them a decent amount money with far less overall risk, which is what conservative lenders want.

 
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Message 12 of 13
Valued Contributor

Re: PIF profits



cheddar wrote:


turbowrx wrote:
So how does PIF make them more money?


It probably doesn't make them more money in actual dollars, but it does make them a decent amount money with far less overall risk, which is what conservative lenders want.

 


Exactly, it's less risk for them and they do make money on those transaction fees. Otherwise, it appears that they would make more from those that carry a balance, because they get the initial transaction fees and then also the interest on carrying balances.
Message 13 of 13