Which part of the credit card companys operations produces the highest profit margin?
A. I would guess that imposition of late fees on hapless customers is the highest, because there is no service provided by the credit card company when it obtains the fee. The $30 to $40 late fee is a one-cent cost of moving data from one data processing file to another, with the result that $30 to $40 comes out of your bank account and goes into theirs.
