Do credit card companies make billions on fines and fees alone?
by 
The Curious Bag
ANSWERS: 1
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Credit card companies such as Visa, Mastercard and American Express do not make money from late fees and fines--they make their money by charging merchants a small per-transaction fee. However, the banks that issue credit cards, such as Chase, Citi and Bank of America, do make money from late and over-limit fees, estimated at nearly $20 billion for 2009.
Source:
New York Times: Credit Card Industry Aims to Profit From Sterling Payers
New York Times: How Visa, Using Card Fees, Dominates a Market
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