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American Express would offer a cardholder money, say $300, to surrender his/her credit card because the company wants to reduce the number of accounts in
American Express would offer a cardholder money, say $300, to surrender his/her credit card because the
company wants to reduce the number of accounts in order to reduce its fixed cost.
company has a very low opportunity cost for the money being offered.
cardholder is not using the card enough.
cardholder is a poor credit risk and may default with expected losses exceeding $300.
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