https://thehiddensplit.com/investigations/credit-card-rewards/ https://i4.ytimg.com/vi/opHpjcRgBww/hqdefault.jpg Your Credit Card Rewards Aren't Free. Who Pays? Your credit card gives you cash back, points, or miles. But where does that money actually come from? We follow a $100 purchase through the cardholder, issuer, network, acquirer, and merchant to see who pays for credit card rewards, where the fees go, and why the system can still be profitable for banks. Along the way, we break down interchange, network fees, merchant processing, rewards economics, revolving balances, annual fees, and the hidden incentives behind the system. Sources and research used in this episode include the Consumer Financial Protection Bureau, Federal Reserve research, U.S. Government Accountability Office materials, and official Visa and Mastercard information. The Hidden Split explains the financial and business systems behind everyday life. thehiddensplit.com Educational content only. This video explains how the system works and is not personalized financial advice. 00:00 Where did the $2 come from? 00:46 Follow the $100 02:03 One fee becomes three 03:05 Where rewards are funded 03:48 The two businesses inside a credit card 05:22 Transactors vs. revolvers 06:18 Annual fees and other inputs 06:54 Who actually pays? 07:24 The $15.1 billion redistribution 08:42 So who really pays? 09:06 There isn't one payer https://www.youtube-nocookie.com/embed/opHpjcRgBww 2026-08-17T21:57:27+00:00