Originally Posted by
peegeenyc
I can't believe how ridiculously confident everyone here is that they will get $1100 from C1, for spending $1000. You really are delusional.
No, they'll get FAR more than that. They'll get merchant fees, which is where they make their money. And a certain percentage will carry a balance, earning them interest. And a certain percentage will pay late (though admittedly small) where they'll get fees.
Believe me, they've done the math - they know that offering the functional equivalent of $10,000,000 to consumers will net them far, far more in return over the expected lifetime of the cardholders.