Credit Card Rewards Economics: How Points and Cashback Programs Really Work
Credit card rewards are funded by interchange fees, interest from revolvers, and annual fees. Discover how $15 billion transfers annually from lower-income to higher-income cardholders through the hidden economics of cashback and points programs.
19 min read
How ACH Works: The Backbone of American Electronic Payments
The ACH Network processes $86.2 trillion annually across 33.6 billion payments, representing 1% of global GDP. Discover how batch processing, Same-Day ACH, and direct deposit power the backbone of American electronic payments at a fraction of wire transfer costs.
28 min read
How Central Banks Influence Currency Values: Policy Tools and Market Impact
Central banks control currency values through interest rates, quantitative easing, and direct intervention—tools that can strengthen or weaken currencies by 20-40% within months.
20 min read
How SWIFT Works: The Backbone of International Banking Communications
SWIFT processes 53+ million messages daily across 11,500+ institutions in 200+ countries, providing the messaging infrastructure that enables international wire transfers, trade finance, and securities transactions.
21 min read
Interchange Fees Explained: The Hidden Cost in Every Card Transaction
Interchange fees cost US merchants $41.3 billion annually and add approximately $1,200 per year to American family expenses. Discover why merchants pay these fees, how they inflate prices, and why cash payers subsidize credit card rewards.
27 min read
The Carry Trade: How Investors Profit from Global Interest Rate Differentials
The carry trade exploits interest rate gaps by borrowing in low-yield currencies (JPY at 0.1%) to invest in high-yield currencies (AUD at 4.35%), generating returns of 4-8% annually plus potential currency appreciation.
22 min read
The Mechanics of Cross-Border Payments: Why International Transfers Are Complex
Cross-border payments traverse 3-5 intermediary banks, each performing compliance checks and operating on different time zones and cutoff times, resulting in 3-5 day settlement and costs of 6-10% for international transfers and remittances.
24 min read
Understanding Payment Rails: ACH, Wire Transfers, and Real-Time Payments
Payment rails are the infrastructure systems that move money between accounts—ACH processes 31 billion transactions annually at low cost but takes 1-3 days, wire transfers settle same-day for $25-50, while real-time systems like FedNow and RTP deliver instant settlement 24/7.
21 min read
What Drives Currency Exchange Rates? Understanding the Forces Behind FX Markets
Currency exchange rates respond to interest rate differentials, inflation, capital flows, and central bank policy—forces that can move major currencies 15-30% within months.
19 min read