It’s recognizing that any cash the sovcit manages to make multibillion dollar company lose will just have that company pull it out of the pockets of the people that do pay their bills.

This relies on the assumption that credit card companies are not already extracting as much value as they can from those bill payers. If they thought they could get away with raising rates on people without turning enough away to make it a net loss, it seems to me that they would have already.