Which aspect of credit cards allows the credit card companies to make money?

Question

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An aspect of credit cards that you should be aware of is finance charges. Credit card companies make money by lending to you at a higher rate than it costs them to obtain financing. Because many of their customers don't pay back their debts in a timely fashion (default), they must charge enough to cover the risk of default as well. Interest is usually calculated on the average daily balance over the month, and payments are applied to old debts first. Although there are "teaser"
rates that may be less than 5 percent, most credit cards regularly charge 13 to 24 percent annual interest. The low introductory rates are an aspect to time limitations (often six months or less), and they revert to the higher rates if you don't pay on time.

Which Aspect of Credit Cards Allows the Credit Card Companies