Why are credit card interest rates so high?

Interest margins on credit cards increased sharply during the global financial crisis in 2008 and have increased further in the years after this.

The Australian Bankers Association said credit card margins reflect increased uncertainty and volatility in financial markets. The Commonwealth Treasury said there has been a slight increase in credit card defaults but not enough to account for this increasing spread. The Senate Economics References Committee is inquiring into credit card interest rates.

Source: Banking Day