💰 Who Really Pays for Your Credit Card Rewards? | Econ 101

Who really pays for your 2% cash back? Every time you swipe your credit card, money changes hands long before your rewards hit your account. In this episode of Econ 101, Kevin Thompson breaks down where merchant fees go, how banks and payment processors make billions, and why your airline miles and cash back aren't actually free. Topics covered: How credit card transactions work What interchange fees really are Why merchants accept credit cards Who ultimately pays for rewards Why carrying a balance can erase any benefit from cash back If you've ever wondered how banks can afford to hand out points, airline miles, and cash back while reporting record profits, this episode follows the money. Subscribe for more episodes of Econ 101 and Facts Over Feelings. 00:00 – Who Really Pays for Your Cash Back? 01:18 – Following the Money Behind Every Swipe 04:01 – Why Banks Love Credit Cards 07:53 – The Hidden Wealth Transfer 10:07 – Credit Cards Aren't the Enemy NEWSLETTER (WHAT NOW): https://substack.com/@9icapital?r=2eig6s&utm_campaign=profile&utm_medium=profile-page Follow Us: youtube: / @9icap Linkedin: / kevin-thompson-ricp%c2%ae-cfp%c2%ae-74964428 facebook: / mlb2cfp Buy MLB2CFP Here: https://www.amazon.com/MLB-CFP%C2%AE-90-Feet-Counting-ebook/dp/B0BLJPYNS4 Website: http://www.9icapitalgroup.com Hit the subscribe button to get new content notifications. Corrections: Editing by http://SwoleNerdProductions.com Disclosure: https://sites.google.com/view/9idisclosure/disclosure