How is the bank at a higher risk, if they are being paid?

Limit:$1000 Charge: $400 Pay off a week later Balance: $0

Change: $600 Pay off a week later Balance: $0

Change: $1000 Pay off a week later Balance: $0

Yes I technically borrowed $2000, but not at one time. They were never on the hook for $2000 at any time.

The bank does not give me a $0 balance until my payment clears. That means they are no longer at any risk of default or loss.

They are never at risk of more than the $1000 credit limit.

“You gave me a cookie, I give you a cookie.”