For the first time ever, non-credit union credit card issuers of prime and super prime credit cards in 2011 and 2012 have made more money from operational fees on their card programs than they have from interest on credit card loans, according to a leading card industry analyst.
R.K. Hammer, founder of the Card Knowledge Factory, a California-based card consultancy, said fee income as a percentage of total income from card portfolios with the highest credit scores had been rising for some time.
"The R.K. Hammer card revenue model estimates that 55% of the card industry's total revenue last year came from fees, with 45% from interest; never has the card fees trend line intersected the revenue line from interest – except for 2011 and 2012," the firm noted.
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