Originally Posted by
prasha11
The point, is this a trend setting event?
Why citi agreed to almost '0' profit? For such a large volume the cost of doing business cannot be ignored. The break even point can be large in net $s
If you read the Bloomberg article it mentions Amex was only getting 0.6%. Well below their normal rate. Not sure if you know this or not but I'll let you in on a little secret: CC companies make the vast majority of their money on interest charges.