credit cards

Best secured credit cards

How does a secured credit card with no annual fee make the issuer money? An ASU finance expert answers.

In this article published Aug. 3, 2022, on WalletHub:

Vendors accepting credit card payments must pay processing fees to the issuer. These processing fees typically range from 1.5 to 3.5% of the transaction amount. This is why you will oftentimes see gas stations charging different prices if you pay with cash (or with a debit card) versus if you pay with a credit card. When a customer pays with a credit card, the vendor must pay the payment processing fee, which is a source of revenue for the issuer.

Geoffrey Smith, clinical professor of finance

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