Who Really Pays for Your Credit Card Cashback?

Cashback sounds like free money. But if your bank rewards you for spending, who actually pays—and how does the bank still profit? In this video, we break down the business behind credit card rewards, from merchant transaction fees to interest and annual fees. We explore who benefits, who bears the costs, and why cashback works differently in the US and Europe. Subscribe to Money Makes the Map for clear explanations of economics, business, and the money shaping everyday life. Do you use a credit card for cashback, convenience, or both? Tell us in the comments. 00:00 Free Money? 01:05 How Card Payments Work 01:30 Transaction Fees 04:30 Interest: The Real Cost 05:35 Annual and Late Fees 09:00 Who Really Pays? 10:00 US vs Europe 10:40 The Takeaway #CreditCards #Cashback #Economics