I used to think banks hated us people who paid off our balance every month, but they still make money on us too...
The fees the vendor pays outweigh the cashback too. He says he paid $5 in fees, but that doesn't include the vendor's fees, which were probably baked into a lousy exchange rate.
I don't think there's any card that offers more than 1.5% cash back on everything (some offer above 1.5% on certain things). And most fees are at least 2%, so just on the transaction fee alone they cover the cost of points/cashback.
The fees the vendor pays outweigh the cashback too. He says he paid $5 in fees, but that doesn't include the vendor's fees, which were probably baked into a lousy exchange rate.
I don't think there's any card that offers more than 1.5% cash back on everything (some offer above 1.5% on certain things). And most fees are at least 2%, so just on the transaction fee alone they cover the cost of points/cashback.