Sally French
đ€ SpeakerAppearances Over Time
Podcast Appearances
Yeah, please.
Let's do it.
Let's talk about why that wasn't sustainable.
So the bank that issued this card, Wells Fargo, didn't have a lot of ways to make money for it,
Remember, the annual fee on this card was $0.
Yes.
So they're not getting money that way.
Many of the cardholders probably weren't carrying a balance.
They're paying off their five bananas.
Exactly.
So they're not paying these interest fees or late fees to the bank.
So they're not making money that way either.
The only way to make money was on transaction fees.
And like you said, some people were only making five purchases a month on their card.
Transaction fee is just a percentage of what you pay.
So cardholders are earning tons of points on rent and the bank was losing out.
According to the Wall Street Journal, Wells Fargo was reportedly losing $10 million a month on this card.
I know.
It wasn't going to last forever.
Absolutely.