LOS ANGELES—A new report indicates that credit card fee and interest income topped $163 billion in 2016.
A study from research firm R.K. Hammer shows that credit card fee income rose 6% year over year in 2016 and is expected to jump 6.5% in 2017, The Motley Fool reported.
Breaking down how cards generated $163 billion in 2016 through fees and interest:
- Interest income ($63.4 billion)
- Interchange income ($42.4 billion)
- Cash advance fees ($26.6 billion)
- Annual fees ($12.5 billion)
- Penalty fees: ($12 billion)
- Enhancement income: ($6.3 billion)
The report is another indication that credit cards remain a lucrative revenue stream for issuers, while at the same time debit revenue, dinged by the Durbin Amendment, continues to decline. Sources, however, recently have told CUToday.info that credit card interchange growth, for the first time, has stalled.