There is a multitude of ways that a bank or credit card issuer makes money from consumers who use their cards. It can be difficult some times to fathom just how credit card companies make money and how much money they are actually making from our transactions. Banks take in money from borrowers, pay a small amount of interest, and then turn around and loan our own money right back to us at a higher interest rate. But, that is not the only way the credit card companies earn a living. Here is a look at how credit cards works all the way from the point of sale to how these companies collect their money.