Originally Posted by
ChrisFlyer66
That assumes the cash back is a "Loss". But they do get money from swipe fees. I don't know exactly how much, but I'm sure it is enough that they aren't losing the entire $2000. Just googling it I see that swipe fees average around 2%, but are higher for premium credit cards.
You can go into the details if you like. I'm sure Costco is not paying more than 2% swipe fees to Citi.
It is known that Citi DC gets probably most of the shut-downs. Do not think Citi would be prepared to payout $2,000 in this case. This is not what this intended for (credit cycling). It poses risks to the bank.