Originally Posted by gardener
I think iDine advances the restaurant, say, $10 grand. Then they have to provide $20 grand in dining credits when the customers dine(us).
If they do $20K of iDine biz in 6 months, it would be 200% annual interest, roughly speaking. Two years, 50% APR. One of the reasons a restaurant is not listed in every program imho, to adjust the recovery rate.
But remember that part of what the restaurant is paying for is our miles. So not all of what iDine is charging is for interest. They have to buy the miles they give to us. Also, iDine provides advertising for the restaurant. Their websites cost money to create and maintain and present, and those booklets they mail to us and those emails they send us are not free. And their customer support people who deal with our complaints don't work for free. This is probably a major issue in the lawsuit - determiming what the miles and advertising are worth. Should be interesting.