How does a credit card company make money?
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The Secret: Who pays for your card's cashback?
Merchants, through swipe (interchange) fees. Each swipe costs the merchant a percentage, and much of that interchange fee flows to the issuing bank. Interest from balances is the other big engine. Source: Wikipedia – Interchange fee
Why They Stay: Why do people keep a card for decades?
Older accounts help credit scores, and rewards add up. Length of credit history is a scoring factor, so closing an old card can feel costly. Points balances also keep people in. Source: myFICO – What's in my score
Why They Leave: When do cardholders drop a card?
When the annual fee comes due and perks feel unused. The annual-fee anniversary is the decision moment. Issuers often respond with retention offers to people who call to cancel. Source: CFPB – Credit card annual fees