How do credit cards give away free trips and still make everyone pay?

How do credit cards give away free trips and still make everyone pay?

PolyMatter’s “The Surprising Way Credit Cards Make Money” argues that lavish U.S. credit card rewards are not mainly funded by careless borrowers paying interest. The transcript explains how interchange fees on everyday purchases, rewards-driven competition for wealthy spenders, merchant pricing rules, and opaque regulation create a hidden transfer from cash and lower-income customers to high-reward cardholders while banks profit from both interest and transactions.