Submitted by idkmybffdee t3_zz9hja in explainlikeimfive
nrron t1_j2a9ktp wrote
Banks incentivize people with money to bank with them and then use that money to loan to others and make money on the interest.
Credit card companies make money by charging a fee to the business that accept their cards and they make money on interest when people don’t pay their balance in full each month
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