I.... Visa Infinite products) can command 2.1% to 2.4% as an interchange fee.
The card issuer does not receive all of the interchange revenue.
Originally Posted by
zoned_post_meridiem
That's assuming most people a) maximize their UR points,
Even if most people redeem at $0.01 per point, earning 3 points per dollar represents a loss for Chase. They only make money if we use the card for unbonused spend or carry a balance, but I daresay a large number of Reserve cardholders do use it for general spending (because they do not want to "miss" a 3X opportunity) -and- a fair number of people do carry a balance on their cards even when they have lower cost borrowing options. Most people do not spend much time thinking about payment cards.