Consume Product

Actually, the bank only gets between 1-3% of the total transaction value, plus a very small flat fee per transaction (less than 25 cents). Meanwhile, they're paying me *at least* 1% and up to 5% depending on where I shop, meaning they basically pay me their entire share (and sometimes more) and only make a few pennies each time I use the card.

The only reason this is profitable for them is because they hope that one day I won't be able to pay off my balance in full and then they can assrape me with their 15% APR (or whatever it is currently). Also, because the rewards balance accrues and isn't paid out automatically until I request it, they can make use of that money in the meantime for short term speculation.