I think it differs for each company. My understanding was that Mastercard and Visa (for example) are not credit lenders, but rather are brand companies that get money by charging banks to issue cards and charging merchants fees to use them. I think Amex is different in this respect.
So in this case any bad debts are held by the issuer/banks. You would imagine that revenues will still drop as people stop using credit though.
Correct me if I am wrong on this.
Cheers
SBC
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I think it differs for each company. My understanding was that...
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