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The end of the "Free Ride" for credit card holders with good credit?

The end of the "Free Ride" for credit card holders with good credit?

Old May 19, 09, 9:21 pm
  #31  
 
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Originally Posted by BigLar View Post
Really? Where've you been?

Fully half to three-quarters of the gas stations I pass have different prices for cash vs. credit.
I'm in California. Illegal here for me and the more than 10% of Americans who share my state.
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Old May 19, 09, 9:38 pm
  #32  
 
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I think I'd pay something for the convenience of not carrying cash and the ability to shop online with customer protections.

But, anyway, the float is really not something I care about. In fact, when I have cards with good rewards (like my Schwab) and not enough credit (see my report of my US mint coins) I often end up paying a chunk before the bill comes just to free up space and get more rewards. The float amounts to zilch, especially with today's interest rates. But the rewards are huge.

Next, I assume cc companies will be happy for our business with no fees/penalties/interest just because they get a nice interchange fee.

Finally, as a merchant, I'm always surprised that the largest portion or our charges fall at the "qualified" rate meaning these customers are using no-reward cards, which cost us merchants less to process. They're literally leaving money (or miles . . . ) on the table.
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Old May 19, 09, 10:05 pm
  #33  
 
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Originally Posted by josephstern View Post
I'm in California. Illegal here for me and the more than 10% of Americans who share my state.
I live in San Diego and see a number of major and minor branded gas stations showing cash and credit prices (generally a three cent/gallon difference). I don't know if they are breaking state law or if LA has a muni ordinance on the cash/credit issue that San Diego does not.
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Old May 19, 09, 10:16 pm
  #34  
 
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Originally Posted by runninaway View Post
This is just posturing by the banks in an effort to rally support in defeating the current proposals in congress.
I agree with this
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Old May 19, 09, 11:22 pm
  #35  
 
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You should all agree it is posturing by the banks!!!
You folks are being manipulated! Wake up ask questions about why an article is written who fed it to the lazy reporter. The discussion should be about how there is no more good news reporting.
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Old May 20, 09, 12:44 am
  #36  
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Originally Posted by RustyC View Post
I think if you already have a balance, then the big issuers start charging interest on purchases from day one.
This has always been the case - interests are ACCURED from the moment you make a purchase - it is the same for everyone. However, when you pay in full each statement cycle by due date, the ACCRUED interest is never charged (or it is waived).

There is a difference between ACCRUED and BILLED. You are not being billed the interest if you pay in full by due date of each statement cycle. If you dont, then the interest is Billed.

Last edited by Happy; May 20, 09 at 2:35 pm
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Old May 20, 09, 12:47 am
  #37  
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Originally Posted by BigLar View Post
Really? Where've you been?

Fully half to three-quarters of the gas stations I pass have different prices for cash vs. credit.
Where have you been? Only in your state?

It is illegal to offer cash discount in many states, including the 2nd and 4th most populated states - Texas and Florida.
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Old May 20, 09, 12:58 am
  #38  
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Originally Posted by iahphx View Post
I also don't think the credit card companies are going to do away with awarding ff miles and such. Rewards are what drives heavy card spending.

If it costs the customer money, the customer will find another way to pay. Like with the bone-headed move to charge higher foreign transaction fees -- now about 3% on most cards. I guess they'll take advantage of less-frequent int'l travellers, but as those transaction fees have increased, I've paid for more expenses overseas in cash (1% ATM fee). I don't think that's a trend the card companies would want to see expanded.
Imagine if Capital One tried overnight to impose a 3% "conversion fee" like the other cards. They've scooped up so many people with lots of foreign travel who are sensitive to that fee.

My credit union card is actually higher than Capital One now at 1%, which they put in after Visa dropped its 1%. But I have a lot more confidence in the credit union pricing on a cost-plus basis and not "inventing" any fees with no basis in cost than I do in the banks. It's one thing for the bank to charge 2% on something when the credit union charges 1%, but quite another for a bank like Wells Fee-go to just invent a $5 charge for using an ATM outside the U.S. when the CU charges $0.
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Old May 20, 09, 4:48 am
  #39  
 
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I'm in Florida and most of the gas stations post prices with a sign sticking out at the side saying 'CASH or brand CREDIT CARD'. I don't think cash discounts are illegal, but that the credit card companies put that in their contacts. I know American Express does.

As far as moving the grace period and billing dates around, asking them to move the date to one convenient for you won't work until the new laws go into effect, because the whole point of moving the date is to make you miss your payment date, thereby allowing the company to charge penalties and raise rates. The notice wasn't hidden in the fine print. It didn't happen.

A great many of the people who are incurring fees and rate changes are not those that are mismanaging their accounts, but those that are being cheated by the companies. It's as if you bought a car, and six months later your loan company moved your payment due date without noifying you, then reposeessed the car because your payment was late., and followed that by pointing out a tiny weirdly worded clause that essentially said that they didn't have to honor the original terms of the contract.

Losing a grace period is a small thing compared to that. I know, because they did that to me, moved the date with no real notice, so I sat down to pay my bill on the usual date, and discovered it was past due. the rate then went up. I hadn't used the card in a while, and I guess they figured they weren't making enough money off of me.

I don't think the bill goes far enough. I think they should only be allowed to raise rates for future purchases.
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Old May 20, 09, 6:57 am
  #40  
 
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Originally Posted by Centurion View Post
You should all agree it is posturing by the banks!!!
You folks are being manipulated! Wake up ask questions about why an article is written who fed it to the lazy reporter. The discussion should be about how there is no more good news reporting.
With all due respect here, most of our comments are saying this, but with reason to back it up. We're all explaining why the scenario laid out in the article would never come to pass.
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Old May 20, 09, 7:14 am
  #41  
 
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Originally Posted by Happy View Post
In other words, you are spending on your income that has NOT yet received - note there is still 20 days grace period, plus the charges could be spreading for the full billing cycle... and Yet, you have to wait for your paycheck in order to pay it in full...

Living on credit is a dangerous habit ... A slippery slope if you would...

And that is different from 80% of Americans in what way?

The point I was trying to make is about providers moving the goal-posts at-will and with no notification. It's not right, and I hope the government neuters them good and proper.
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Old May 20, 09, 8:10 am
  #42  
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Originally Posted by josephstern View Post
I'm in California. Illegal here for me and the more than 10% of Americans who share my state.
Sorry, JS. This is 100% wrong.

Law does not prohibit discount for cash or charge for paying by credit card if charge is disclosed up-front.

I saw many gas stations in L.A. yesterday with diff prices for cash and credit.

By the way, local laws have nothing to do with this. This area is pre-empted by Federal law.

Differentials between cash and credit prices (around 10 cents/gallon) are likely to come down once gov cracks down on card company fees to merchants as was recently done in Australia.

Too bad for us FTers. We've been getting free flights paid for by others.

Gather ye miles while ye may!
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Old May 20, 09, 8:19 am
  #43  
 
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Originally Posted by biggestbopper View Post
Sorry, JS. This is 100% wrong.

Law does not prohibit discount for cash or charge for paying by credit card if charge is disclosed up-front.
That sounds right to me, I've seen two price points here in Cali.
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Old May 20, 09, 1:59 pm
  #44  
 
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Originally Posted by biggestbopper View Post
Sorry, JS. This is 100% wrong.

Law does not prohibit discount for cash or charge for paying by credit card if charge is disclosed up-front.

I saw many gas stations in L.A. yesterday with diff prices for cash and credit.

By the way, local laws have nothing to do with this. This area is pre-empted by Federal law.

Differentials between cash and credit prices (around 10 cents/gallon) are likely to come down once gov cracks down on card company fees to merchants as was recently done in Australia.

Too bad for us FTers. We've been getting free flights paid for by others.

Gather ye miles while ye may!
I stand corrected. It's not part of the law, but rather in the merchant agreements. This thread goes into it in more depth:

http://www.flyertalk.com/forum/omni/...dit-cards.html
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Old May 20, 09, 2:00 pm
  #45  
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Originally Posted by josephstern View Post
I stand corrected. It's not part of the law, but rather in the merchant agreements.
Merchant agreements do not preclude the provision of a cash discount, provided that it is truly a discount off of the advertised price.
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