Profitability of the banks depends principally on the following factors

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Profitability of the banks depends principally on the following factors:

a. Value of the average transaction.

b. Rate of merchant discount.

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c. Cost of the bank money.

d. Cost of processing.

e. Rate of cardholder service charge.

f. Average pattern of repayment.

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g. Loss from bad debts and fraud.

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