Why do credit card companies close your account after you pay off your balance?

I’m the kind of guy who pays the balance off each month. Over the summer, Amex closed my account after I made a $3,000 payment for no reason. I realize the recession might have still been going on during the summer but you’d think to maximize profit, if they felt I was high risk, why wouldn’t they just leave my account alone and rake in my merchant fees, annual fee, and interest in I ever decided to carry a balance? It’s like a lose, lose for both of us.

It isn’t that you were high risk, you were a non-money making asset. If you don’t carry a balance, they don’t make money off you. Interest, late fees, over limit fees, payment fees, etc. are how they make their living. If you pay off your balance, in full, every month, how are you helping make them a profit?

High Risk Merchant Accounts, Credit Card Processing, Adult, Gambling

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