this guys could ruin us all
#17
Join Date: Jan 2014
Posts: 11
i mentioned here, or maybe on fatwallet that my local walmart called the cops on me after i left the store having done billpays. the next time i went, loss prevention stopped me from making billpays. it all makes sense now, was that same walmart on colony road in wallingford. at least one store has become more vigilant.
#18
Join Date: Dec 2012
Location: Murica
Posts: 344
#19
Suspended
Join Date: Jan 2013
Location: LAX/SNA
Programs: AA, Hilton Gold
Posts: 3,887
#20
Original Member
Join Date: May 1998
Posts: 1,139
This is an interesting thread. I guess the lack of data on credit card swipe fees makes it hard to compare, but I am surprised at the high-horse that some posters quickly climb on.
If AMEX makes 2% on credit card swipes, pays 5% as a rebate to an MSer who charges $200,000 a year, AMEX would seem to lose $6,000. If someone steals an AMEX credit card and buys $6,000 worth of prepaids, AMEX will cover the loss of $6,000 incurred by the guy who had his credit card stolen.
Is the MSer better than the guy who stole the credit card? Certainly the MSer is better in the eyes of the law since MSing is legal but stealing a credit card is not. But isn't one of the key differences the fact that AMEX extended a sufficient line of credit to the MSer to allow him to make a bit of scratch? The gentleman who stole the credit card and bought some reloadables might not have qualified for a large enough line of credit to do much MSing. And he might not live near a WalMart.
The situation would of course be different if he mugged someone to get the stolen credit card. But if it were obtained nonviolently, is this guy that much different than an MSer? Is it really different for AMEX?
If AMEX makes 2% on credit card swipes, pays 5% as a rebate to an MSer who charges $200,000 a year, AMEX would seem to lose $6,000. If someone steals an AMEX credit card and buys $6,000 worth of prepaids, AMEX will cover the loss of $6,000 incurred by the guy who had his credit card stolen.
Is the MSer better than the guy who stole the credit card? Certainly the MSer is better in the eyes of the law since MSing is legal but stealing a credit card is not. But isn't one of the key differences the fact that AMEX extended a sufficient line of credit to the MSer to allow him to make a bit of scratch? The gentleman who stole the credit card and bought some reloadables might not have qualified for a large enough line of credit to do much MSing. And he might not live near a WalMart.
The situation would of course be different if he mugged someone to get the stolen credit card. But if it were obtained nonviolently, is this guy that much different than an MSer? Is it really different for AMEX?
#21
Join Date: Apr 2013
Posts: 202
This is an interesting thread. I guess the lack of data on credit card swipe fees makes it hard to compare, but I am surprised at the high-horse that some posters quickly climb on.
If AMEX makes 2% on credit card swipes, pays 5% as a rebate to an MSer who charges $200,000 a year, AMEX would seem to lose $6,000. If someone steals an AMEX credit card and buys $6,000 worth of prepaids, AMEX will cover the loss of $6,000 incurred by the guy who had his credit card stolen.
Is the MSer better than the guy who stole the credit card? Certainly the MSer is better in the eyes of the law since MSing is legal but stealing a credit card is not. But isn't one of the key differences the fact that AMEX extended a sufficient line of credit to the MSer to allow him to make a bit of scratch? The gentleman who stole the credit card and bought some reloadables might not have qualified for a large enough line of credit to do much MSing. And he might not live near a WalMart.
The situation would of course be different if he mugged someone to get the stolen credit card. But if it were obtained nonviolently, is this guy that much different than an MSer? Is it really different for AMEX?
If AMEX makes 2% on credit card swipes, pays 5% as a rebate to an MSer who charges $200,000 a year, AMEX would seem to lose $6,000. If someone steals an AMEX credit card and buys $6,000 worth of prepaids, AMEX will cover the loss of $6,000 incurred by the guy who had his credit card stolen.
Is the MSer better than the guy who stole the credit card? Certainly the MSer is better in the eyes of the law since MSing is legal but stealing a credit card is not. But isn't one of the key differences the fact that AMEX extended a sufficient line of credit to the MSer to allow him to make a bit of scratch? The gentleman who stole the credit card and bought some reloadables might not have qualified for a large enough line of credit to do much MSing. And he might not live near a WalMart.
The situation would of course be different if he mugged someone to get the stolen credit card. But if it were obtained nonviolently, is this guy that much different than an MSer? Is it really different for AMEX?
Are you serious?
#22
Original Member
Join Date: May 1998
Posts: 1,139
At least halfway. Care to explain the differences, or does the thumbs down fully express your thoughts. I am an MSer, too, by the way, but I think there is a loss to some party in the chain that constitutes the winnings to the MSer. Just like the guy who imprints the credit card.
#23
Join Date: Mar 2007
Location: Midwest U.S.A
Programs: Too many to list. Since the early 90's.
Posts: 1,407
Allowing the very few to benefit more than most from a bank's reward program is part of the cost of marketing their program and believe me they are reaping billions. Also, do not underestimate the ability of these reward program to get us to use not just a card, but we tend to put real business on these and other cards as well as doing other business with these banks due to other things they are able to promote to us. We then buy their gift cards which causes more swipe money from retailers to come their way.
#24
Join Date: Jul 2013
Posts: 95
At least halfway. Care to explain the differences, or does the thumbs down fully express your thoughts. I am an MSer, too, by the way, but I think there is a loss to some party in the chain that constitutes the winnings to the MSer. Just like the guy who imprints the credit card.
#25
Suspended
Join Date: Jan 2013
Location: LAX/SNA
Programs: AA, Hilton Gold
Posts: 3,887
That's like saying AA made $400million last quarter, so fuel cost is just a drop in the bucket. Without something to compare it to, your logic is invalid.
#26
Join Date: Dec 2012
Location: ATL F-Terminal
Programs: Hilton C, Marriott Pt, Delta Pt
Posts: 249
If one making a 1-4% profit from CC companies can be put into the same category as a criminal stealing GCs, then how would you classify CC companies making a 10-30% profit from their members?
Of course, they're not in this business to make 2% swipe fees.
You don't have to worry their bottom lines. They're pretty good with numbers. Just don't miss your payments.
Of course, they're not in this business to make 2% swipe fees.
You don't have to worry their bottom lines. They're pretty good with numbers. Just don't miss your payments.
#27
Original Member
Join Date: May 1998
Posts: 1,139
If one making a 1-4% profit from CC companies can be put into the same category as a criminal stealing GCs, then how would you classify CC companies making a 10-30% profit from their members?
Of course, they're not in this business to make 2% swipe fees.
You don't have to worry their bottom lines. They're pretty good with numbers. Just don't miss your payments.
Of course, they're not in this business to make 2% swipe fees.
You don't have to worry their bottom lines. They're pretty good with numbers. Just don't miss your payments.
And by the way, couldn't all of the rationales for making a buck from MSing be applied to credit card imprinting - it is just a drop in the bucket to the really big corporation that rips off a lot of its customers anyway. And I do not use my credit card for any additional spending compared to what I would use it for if MS did not exist (unless you count buying things with the MS profits).
#28
Join Date: Jul 2013
Posts: 95
Actually it's not like saying that at all. Fuel costs to an airline are a cost of doing business. Giving spending and sign up rewards are not. If the costs they had budgeted for the reward programs were moving outside expectations they would take action. Program devaluation, changes to terms and conditions or discontinuation of cards, they have plenty of options. I could certainly put on my former auditor hat and comb through the 10k but I have AE gift cards to churn and MO's to deposit.
#30
Join Date: Apr 2011
Location: MSP
Programs: DL, BA, AA
Posts: 270
He was arrested for buying gift cards with stolen/fraudulent CC's.
http://www.wfsb.com/story/25330742/n...gift-card-scam
That's all your going to hear now from WalMart and Staples managers. I wouldn't be surprised if the police are called next time I try to load up some Ink.
http://www.wfsb.com/story/25330742/n...gift-card-scam
That's all your going to hear now from WalMart and Staples managers. I wouldn't be surprised if the police are called next time I try to load up some Ink.