--- title: "Meaning & Key Takeaway of: Credit cards have been extremely…" description: "\"Credit cards have been extremely profitable to banks. They're profitable not from the fees they collect from the retailers that use the credit cards, t..." image: "https://sms4smile.com/quotes/i/248/richard-thaler-3060_bills_credit-cards-have-been-extremely-profita_2140416.png" --- # Credit cards have been extremely profitable to banks… ![“Credit cards have been extremely profitable to banks. They're profitable not from the fees they collect from the retailers that use the credit cards, that pays the bills, but the real profits come from the interest payments and the charges to users that are unexpected.” quote by Richard Thaler](https://sms4smile.com/quotes/i/248/richard-thaler-3060_bills_credit-cards-have-been-extremely-profita_2140416.png) [Download](https://sms4smile.com/quotes/i/248/richard-thaler-3060_bills_credit-cards-have-been-extremely-profita_2140416.png) [Open image](https://sms4smile.com/quotes/i/248/richard-thaler-3060_bills_credit-cards-have-been-extremely-profita_2140416.png) > “Credit cards have been extremely profitable to banks. They're profitable not from the fees they collect from the retailers that use the credit cards, that pays the bills, but the real profits come from the interest payments and the charges to users that are unexpected.” [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Credit cards generate most profit for banks through interest and hidden fees, not merchant fees. **In simple terms:** Banks earn mainly from interest and unexpected charges. Key Takeaway Watch for hidden costs and manage credit wisely. Themes finance consumer behavior banking fees Mood cautious informed Type financial educational When to use this quote - personal budgeting - loan management - financial planning Key Concepts economics behavioral finance interest rates Questions to Reflect On - Do you understand the true cost of your credit? - How can you minimize unexpected fees? A Different Perspective Interest charges can be opaque and burdensome. ★ ★ ★ ★ ★ No ratings yet [Credit](https://sms4smile.com/quotes/about/credit/) [Credit cards](https://sms4smile.com/quotes/about/credit-cards/) [Interest](https://sms4smile.com/quotes/about/interest/) [Payment](https://sms4smile.com/quotes/about/payment/) [Profit](https://sms4smile.com/quotes/about/profit/) [Profits](https://sms4smile.com/quotes/about/profits/) [Retailers](https://sms4smile.com/quotes/about/retailers/) ## Related quotes > [Maybe you'll take the cash out. 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Pay off your credit cards.](https://sms4smile.com/quotes/andrew-tobias/you-want-21-percent-risk-free-pay-off-your-credit-cards/) [Andrew Tobias](https://sms4smile.com/quotes/author/andrew-tobias/) > [I graduated from high school in 1963. There were no computers, cell phones, Internet, credit cards, cassette tapes or cable TV.](https://sms4smile.com/quotes/jeffrey-gitomer/i-graduated-from-high-school-in-1963-there-were-no-computers-cell/) [Jeffrey Gitomer](https://sms4smile.com/quotes/author/jeffrey-gitomer/) > [I love, love, love that you want to use your debit card. 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I would also recommend the avoidance of credit cards.](https://sms4smile.com/quotes/mary-mccarthy/be-truthful-and-pay-attention-i-would-also-recommend-the-avoidance-of/) [Mary McCarthy](https://sms4smile.com/quotes/author/mary-mccarthy/) > [Don't cut up your credit cards, the problem is not the cards, it's the lack of financial literacy of the person holding the cards…](https://sms4smile.com/quotes/robert-kiyosaki/don-t-cut-up-your-credit-cards-the-problem-is-not-the-cards-it-s-the/) [Robert Kiyosaki](https://sms4smile.com/quotes/author/robert-kiyosaki/) > [Most people don't grow up. It's too damn difficult. What happens is most people get older. That's the truth of it. They honor their…](https://sms4smile.com/quotes/maya-angelou/most-people-don-t-grow-up-it-s-too-damn-difficult-what-happens-is/) [Maya Angelou](https://sms4smile.com/quotes/author/maya-angelou/) ## More by Richard Thaler > [The Nobel Prize is going to be 'fun money' - for an occasion, when my wife and I want a $50 bottle of wine.](https://sms4smile.com/quotes/richard-thaler/the-nobel-prize-is-going-to-be-fun-money-for-an-occasion-when-my-wife/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [In some ways, the finding that financial education doesn't provide long-term payoffs is hardly surprising. After all, how much do you remember from your…](https://sms4smile.com/quotes/richard-thaler/in-some-ways-the-finding-that-financial-education-doesn-t-provide/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [Fortunately, economists open to new ways of thinking are finding novel ways to use supposedly irrelevant factors to make the world a better place.](https://sms4smile.com/quotes/richard-thaler/fortunately-economists-open-to-new-ways-of-thinking-are-finding-novel/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [If people just put away what's left at the end of the month, that's a recipe for failure.](https://sms4smile.com/quotes/richard-thaler/if-people-just-put-away-what-s-left-at-the-end-of-the-month-that-s-a/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [The wealth in many large estates has never been taxed because it is largely in the form of unrealized - therefore untaxed - capital…](https://sms4smile.com/quotes/richard-thaler/the-wealth-in-many-large-estates-has-never-been-taxed-because-it-is/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [The lesson of my field, behavioral economics, is that we need to understand the ways in which we differ from the rational human assumed…](https://sms4smile.com/quotes/richard-thaler/the-lesson-of-my-field-behavioral-economics-is-that-we-need-to/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [I think behavioral economists don't have any more of an explanation about the rise of Trump than anyone else.](https://sms4smile.com/quotes/richard-thaler/i-think-behavioral-economists-don-t-have-any-more-of-an-explanation/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [There are cases when I can make myself better off by restricting my future choices and commit myself to a specific course of action.](https://sms4smile.com/quotes/richard-thaler/there-are-cases-when-i-can-make-myself-better-off-by-restricting-my/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [For amateur golfers, I think one of the biggest mistakes is to model their play on professionals.](https://sms4smile.com/quotes/richard-thaler/for-amateur-golfers-i-think-one-of-the-biggest-mistakes-is-to-model/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [he card companies will often, as a courtesy, honor that credit card, but hit you with a penalty. 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Because most professional managers can't outperform their benchmarks, and there's little reason to…](https://sms4smile.com/quotes/richard-thaler/if-you-re-trading-individual-securities-you-re-almost-certainly/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [A nudge is some feature of the environment that changes the behaviour of humans but would not change the behaviour of rational economic agents,…](https://sms4smile.com/quotes/richard-thaler/a-nudge-is-some-feature-of-the-environment-that-changes-the-behaviour/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [One reason for high health care costs is that patients fail to follow their treatment regimen.](https://sms4smile.com/quotes/richard-thaler/one-reason-for-high-health-care-costs-is-that-patients-fail-to-follow/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) [Explore all 141 Richard Thaler quotes ](https://sms4smile.com/quotes/author/richard-thaler/) ## More Bills quotes > [If you’re a person struggling to eat and stay healthy you might have heard about Michael Jordan or Muhammad Ali, but you’ll never have…](https://sms4smile.com/quotes/bill-gates/if-you-re-a-person-struggling-to-eat-and-stay-healthy-you-might-have/) [Bill Gates](https://sms4smile.com/quotes/author/bill-gates/) > [Some of the folks on both sides might be sincere, but it does seem as if it is only the opposition that cares about…](https://sms4smile.com/quotes/james-bovard/some-of-the-folks-on-both-sides-might-be-sincere-but-it-does-seem-as/) [James Bovard](https://sms4smile.com/quotes/author/james-bovard/) > [ \[Sport officials\] blocked their support of us. 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