When one includes credit card transaction fees, membership fees, and late charges/interest, how much does the average credit card cost? Has anyone calculated this number, or is it another unknowable fact of the finance industry?
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Replying to @matthew_d_green
Cost from which perspective? I have cards that earn me money, but obviously it is costing the merchants money.
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Replying to @pzb
I’m talking about the sum total of all costs, whether paid by the consumer, merchant, or other third parties. How much does the financial services industry in aggregate make from each consumer card?
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Replying to @matthew_d_green @pzb
The distribution is wildly variable and the average of it will not be a terribly meaningful number, due to the portion of cards which are unused, have poor structural unit economics, are credit cards but not what you think of when you think of credit cards, etc.
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In other areas of human endeavor we seem able to collect, analyze, and disseminate data in reasonable ways that illuminate the cost/benefit ratio of the service being offered. In the credit industry, the answer seems to be (a) data not available, (b) well it’s complicated so
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Credit cards are a critical feature of modern electronic commerce. There should be piles of data outlining the cost of this service, perhaps broken up by consumer segment, but still useful and available. Where is it?
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Annual reports, industry research reports, and private databases. If you want some finger-to-the-wind numbers: Card-network branded gift card: < $10 *median* BigBank debit card, idealized middle class user: [$50, $100] / yr Premium credit card product, professional: $1~2k/yr
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