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The way Nutcase presented his case makes an impression that the only revenue stream banks get is purely from Interchange fees.
Don't forget there is a merchant fees (1.69% - 3.39% for Amex). There is a transaction fees although they are not much. There is also Annual Fees. There are also Interest Charges (you call it "revolvers").
And speaking about interest charges, wanna bet there are plenty of people who are happy to pay interest? Take Citibank for example. A 6.9% lifetime is slightly cheaper than a home loan rate (7.02% ANZ). Some even offers 4.9%.
These costs exclude others such as Late payment fees, O/S fees, ATM fees, etc. You put Interchange fees on top of that.
And do you really think the stuff they have on Rewards are that expensive? For example, my friend had an Eggo (the little egg shaped egg cooker) and that's $39 but takes about 10000 points.
Bottom line is... yes, take a Citibank credit card and AMEX. They are good combination indeed. But don't make it as if banks are losing money because of us.....
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