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RBC personal and commercial banking head Dave McKay, says that banks are focused on attracting customers who use their credit cards frequently to go after lucrative usage fees from retailers.
RBC personal and commercial banking head Dave McKay, says that banks are focused on attracting customers who use their credit cards frequently to go after lucrative usage fees from retailers.
(FERNANDO MORALES FOR THE GLOBE AND MAIL)

Banks ramp up battle for credit card customers

Canadian credit card issuers are waging a new war for each others’ customers, but this time they have a new end game in mind.

Historically, issuers such as the Big Six banks or American Express tried to steal clients to boost the size of their loan portfolios. Credit card lending can be an extremely valuable business because the interest rates charged to cardholders are high, often around 20 per cent. Financial institutions cover these loans with debt and deposits that cost them much less.