Every time you purchase with a credit card you pay the bank. That’s how they make money.
Credit Card Recommendations?
- Thread starter 05satinGT
- Start date
Still don't get it do you?
I pay absolutely no more using my card vs cash on a purchase. My stuff is paid on time. I also used my Best Buy card with 0% for 1 year for our new appliances because I didn't happen to have $5,000 in my pocket at the moment. That's paid off already too. My Amazon Visa card which I buy gas, out for dinner and crap actually gives me points which I get crap for free when I order from Amazon.
You starting to let me down!
No, no, no. Every time you purchase on your credit card, THE MERCHANT pays the bank. That’s ONE WAY how the bank makes money!
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Of a brain, how hard headed can you be? I understand the people who run them up, don’t pay and get jacked 25% plus interest. People like me...not real rocket science.
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I was going to get into non-credit ( debit card ) transactions and the fees you can pay when you use your PIN.....Geeze, I decided to stay away from that lesson.
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This is correct. We have to charge people 3% more if they want to run a card. Not talking $100 items here either. You want to put $60K on a card, no problem, but I’m not paying $2100 for you to do it.
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If I purchase something at a grocery store for $1 and pay cash, I pay $1. Now if I use my card that I get 5% back on, I pay the store $1 and get .05 cents back essentially paying .95 cents for what you just paid $1 for using cash as long as I pay the balance of the card before the due date. I didn't pay anything extra for using my card even though there are fees associated with using it, the merchant did.
Right now for Amazon Chase card I have $440 that I can use the spend on Amazon or, I can use that $440 to make a payment on my card and just use my card to gain 5% of every purchase. That $440 is whats left over after doing 90% of the Christmas shopping for my 2 kids on Amazon. I have paid Chase $0 in interest or late fees because I pay the card off every month and it is for items that I would purchase normally like diapers, wipes, presents, even some groceries as we use prime now a bunch as well.
My AMEX card I have had for going on 2 months and have $56 in rewards points and have paid $0 interest, it is used mainly for gas and groceries. It isn't a ton but it is more than you saved by using cash, all things equal I spent $56 less than you for the identical items, that is money that could remain in your bank account.
One of my favorite benefits of credit, is not needing to carry a large amount of cash at one time. Cash that can easily be stolen or lost and never be replaced.
With my discover card, no big deal if it's stolen or I lose it. With one phone call and 60 seconds of my time it's deactivated and any fraudulent purchases are removed from my account.
Discover gives me a 43k limit of which I'm never over $2000 and it typically gets paid off every 2 weeks.
I suppose I'm more likely to have my ID stolen o suppose
My brother is the opposite. Only carries cash
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With my discover card, no big deal if it's stolen or I lose it. With one phone call and 60 seconds of my time it's deactivated and any fraudulent purchases are removed from my account.
Discover gives me a 43k limit of which I'm never over $2000 and it typically gets paid off every 2 weeks.
I suppose I'm more likely to have my ID stolen o suppose
My brother is the opposite. Only carries cash
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In Florida this would be illegal, you could however give a discount for those using cash.
$2100 is up there.....better make sure the transaction fee for that type of purchase is figured in for the net profit. You probably know this better than I:
Does the transaction fee reduce in percentage with the size of purchase or is the fee level for all purchases?
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No matter how it is done if the price is different for credit vs any of form of payment it is considered a surcharge and is illegal in certain states, one of which is FL where it says he resides. It opens him up to legal problems and losing the right to accept credit cards at all. Convenience fees are different but must be a flat rate and have some stipulations, one of which is that it can never be a % of the purchase price, then it becomes a surcharge.
Every time you purchase. 3% of what you pay goes to the bank. Stores only do this because by having credit, you will spend more at the store than the 3% fee they lose from the transaction.
It cost the consumer money to use the card because they are now spending more.
I lost confidence in you!
I’ll agree with your statement if you can prove the following:
3 items:
1.) Go to grocery store, electronics store, department store, etc. that accepts credit cards and purchase an item on your credit card. Do it right and find something you need! On that receipt from the store, circle and highlight the fee you paid to bank for your purchase. Take a pic and put the receipt on this thread. You can redact your name and card number.
2.) On your credit card statement, please highlight and circle the 3% fee for that purchase on your statement. Take a pic and put that on the this thread. You should have a grace period for interest ( not the transaction fee) for at least 20 days or more. You can redact your personal information and other purchases.
3.) At that same store, buy the same item with cash. (You can return it). I’ll bet you paid the same price CASH OR CREDIT.
This is your opportunity to show everyone reading this thread how your transactions differ from ours.
Summary and Purchase Example.
Merchants have the **OPTION**to offer credit card purchases for convenience to the consumer. It is safer, more secure and if used properly, can reward you with cash, rewards points or statement credits just by using the credit card.
On a personal note, if Im buying an item which cost....$3000 at a department store, I don’t walk in the store with $3000 cash to buy it. I leverage my purchase utilizing my credit card.
If I used my American Express Blue Cash Preferred ( the card is clear and has a blue square in the center with the letters “cash” for this $3000 purchase, the credit card puts up to 6% of the purchase (3% in this case) as a statement credit. In addition, depending on the item purchased on your card, American Express will extend the manufacturer’s warranty for up to 1 extra year at no cost. The minimum grace period is at least 25 days. If I purchase the item one day after the statement closing date, I can get almost 50 days to pay the purchase before interest is assessed. Please point out the flaws in this $3000 transaction?
All card issuers have different programs for their cardmembers. The best programs typically go to those consumers who show the ability to pay timely, manage their credit without over extending and possess an excellent credit score.
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Bottom line. Stores make more money by offering credit because people buy more stuff than just cash.
In order to make more they need to pay out 3% of your purchase price to the banks. Even with this loss they make more money. Which tells everyone that those people who use credit will buy 3%+ more than they would if they only used cash.
Example:
Store only selling by cash makes 100k month. By selling with credit makes 110k(106,700 net) a month. People buy more with credit...
Then the banks said let’s offer 1 to 3% back.
Now same store sells 200k(194k net) on credit.
The consumer just went from paying 100k in purchases to 110k to 200k. But hey it got his 6k back. He just had to spend another 100k to get his 6k. Yes that’s real smart!
Don’t believe me? Ask those with 2 million plus in the bank. Ask them how they earned it?
Or ask those going through bankruptcy? Ask them how that happened?
Credit will not create riches.
In order to make more they need to pay out 3% of your purchase price to the banks. Even with this loss they make more money. Which tells everyone that those people who use credit will buy 3%+ more than they would if they only used cash.
Example:
Store only selling by cash makes 100k month. By selling with credit makes 110k(106,700 net) a month. People buy more with credit...
Then the banks said let’s offer 1 to 3% back.
Now same store sells 200k(194k net) on credit.
The consumer just went from paying 100k in purchases to 110k to 200k. But hey it got his 6k back. He just had to spend another 100k to get his 6k. Yes that’s real smart!
Don’t believe me? Ask those with 2 million plus in the bank. Ask them how they earned it?
Or ask those going through bankruptcy? Ask them how that happened?
Credit will not create riches.
Except that if you have say a $300 monthly budget for expenses. If you spend that $300 via cash or $300 via credit, you're still only spending the exact same $300. I don't care that the credit card company makes money off my transaction because that comes out of the merchants bottom line.
It sounds like you don't know how to stick to a budget or have poor will power when using a credit card. There is zero difference if you treat the money you spend on it as cash and never carry a balance.
In the grand scheme of things, credit card companies don't make much money off those that only spend within their means. They bank on people who have a $300 budget but spend $400 every month and carry a balance hit by their exuberant interest fees, which is pure profit for them.
If you don't understand the difference, and it sounds like you don't, you absolutely should never use a credit card.
It sounds like you don't know how to stick to a budget or have poor will power when using a credit card. There is zero difference if you treat the money you spend on it as cash and never carry a balance.
In the grand scheme of things, credit card companies don't make much money off those that only spend within their means. They bank on people who have a $300 budget but spend $400 every month and carry a balance hit by their exuberant interest fees, which is pure profit for them.
If you don't understand the difference, and it sounds like you don't, you absolutely should never use a credit card.
I have a Chase Freedom and an Amazon card. The Amazon card gets 3% back on purchases and 5% on Amazon purchases. The Freedom card only gets 1% back with certain categories quarterly that are 5% (usually gas in the summer, restaurants in the fall, etc.).
I'm sure it's been mentioned but there's a website that details the best rewards cards and tricks to get more out of them. A quick search will find it.
I'm sure it's been mentioned but there's a website that details the best rewards cards and tricks to get more out of them. A quick search will find it.
Sounds like someone had a really bad experience with a credit card...
In the middle of a 10 day Marriott stay on points.
Got a little down time so I’m going to go through a few years of CC statements and find those extra charges damnit!
I’ve been had!
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Got a little down time so I’m going to go through a few years of CC statements and find those extra charges damnit!
I’ve been had!
Sent from my iPhone using svtperformance.com
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