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CFDietCoke t1_j2aef8z wrote

All credit cards are backed by a bank. Look at your credit card, it will say something like "Issued by XYZ bank" on the back somewhere. Banks have access to capital, both their own and capital reserves made available to them by the Fed system

So when you swipe your card, the bank transfers money from their accounts to the merchants accounts, then marks the debit on your account that you get when you get your statement.

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homeboi808 t1_j2ai3z6 wrote

> All credit cards are backed by a bank. Look at your credit card, it will say something like "Issued by XYZ bank" on the back somewhere

I have a Capital One card, it says nothing about being issued by bank. Are you not simply talking about debit cards?

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CFDietCoke t1_j2aigxt wrote

Capital One is a bank (technically a "bank holding company")

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