The end of the "Free Ride" for credit card holders with good credit?
#46
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#47
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In fact, the wording is surprisingly soft:
So I'm surprised that I don't see cash discounts in my part of town, or, for that matter, discounts at any other merchants. If I'm about to pay for a new piece of furniture with Amex, shouldn't the vendor offer me 3% off to pay by cash? It's in their best interest - costs less, lower chance of fraud, no chance of chargeback, etc.
Surcharges. You will not add any amount to the posted price of goods or services you offer as a
condition of paying with a Credit or Debit Card, except as permitted by the Payment Network
Regulations. This paragraph does not prohibit you from offering a discount to induce a person to
pay by cash, check, or similar means rather than by Credit Card.
condition of paying with a Credit or Debit Card, except as permitted by the Payment Network
Regulations. This paragraph does not prohibit you from offering a discount to induce a person to
pay by cash, check, or similar means rather than by Credit Card.
#48
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50% of cardholders pay in full each month.
Dont know if 80% of Americans live from paycheck to paycheck. Judging by the life style of living from paycheck to paycheck does not seem anything dangerous to you, then may be indeed this is the prevailing American Way. Little wonder when the credit is cut off, the country is in the soup.
#49
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So I'm surprised that I don't see cash discounts in my part of town, or, for that matter, discounts at any other merchants. If I'm about to pay for a new piece of furniture with Amex, shouldn't the vendor offer me 3% off to pay by cash? It's in their best interest - costs less, lower chance of fraud, no chance of chargeback, etc.
But here's the rub: armored car services, risk of embezzlement, risk of theft, etc. aren't free either. There's a cost to accepting cash.
#50
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Try to purchase a ticket on QF site and you will see, for a $110 ticket the CC fee is almost $8 bucks!
Last edited by Happy; May 20, 2009 at 2:47 pm
#51
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If the credit card companies eliminated the grace period, the number of charges would be alot less. If I had to charge it, I would go online the same day and pay off the charge before any interest accumulates.
I do have several credit union MC/Visas and I don't forsee CU's eliminating grace periods.
I am one of those "deadbeats" that pay balances off every month.
I do have several credit union MC/Visas and I don't forsee CU's eliminating grace periods.
I am one of those "deadbeats" that pay balances off every month.
#52
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If the credit card companies eliminated the grace period, the number of charges would be alot less. If I had to charge it, I would go online the same day and pay off the charge before any interest accumulates.
I do have several credit union MC/Visas and I don't forsee CU's eliminating grace periods.
I am one of those "deadbeats" that pay balances off every month.
I do have several credit union MC/Visas and I don't forsee CU's eliminating grace periods.
I am one of those "deadbeats" that pay balances off every month.
But, in reality, so many fewer people would use the cards and that would cut into the interchange fees that are making these guys rich. I don't see it ever happening.
#53
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#54
Join Date: May 2006
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Are you for real?
Bottom line, if I have no benefit of a CC, I will cancel it, the bank then gets no fees and they either go out of business or have less business. Who wins? No one. The CC issuer will employee less people so less jobs. I will pay everything with cash or checks, all I lose is a few miles. If congress wants to destroy the credit card system then this bill should become law.
As far as those of us who pay our bills getting a "free ride", well if I did a bad job of managing my credit, charged say $5000, and took years to pay it off, the bank gets no other fees from me. Even if say interest is 15% a year, they get something less than $750 in interest first year. The bank has borrowed that money from someone and has to pay them say 8%. This is unsecured debt! So the bank pays out $400. The bank's net intake is $350 at best!
If on the other hand, I charge $2000 a month and pay it off, the bank gets 3%, $60 of fees, every month, month after month. Even if they have a cost of borrowing say is 12%, or 1% a month (which is a lot less today) they still make more money from me in fees. $40 a month or $480 a year. AND they know I will pay it unlike those who don't!
Last edited by zacktravel; May 20, 2009 at 3:30 pm
#55
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Fact is Congress is in the hands of Left wing right now. There is no end to the stupidity of "tax the rich and give to the poor". It failed in Eastern Europe and it will fail here.
Bottom line, if I have no benefit of a CC, I will cancel it, the bank then gets no fees and they either go out of business or have less business. Who wins? No one. The CC issuer will employee less people so less jobs. I will pay everything with cash or checks, all I lose is a few miles. If congress wants to destroy the credit card system then this bill should become law.
Bottom line, if I have no benefit of a CC, I will cancel it, the bank then gets no fees and they either go out of business or have less business. Who wins? No one. The CC issuer will employee less people so less jobs. I will pay everything with cash or checks, all I lose is a few miles. If congress wants to destroy the credit card system then this bill should become law.
We should also get the FAA out of the air safety business. Let the flying public vote with their dollars. If too many planes crash, (living) people will stop flying that airline.
#56
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Guess what Einstein (or is it Karl Marx?)! Most school buses do not have seat belts! It does not make them less safe.
#57
Join Date: Jul 2008
Location: MKE
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In fact, the wording is surprisingly soft:
So I'm surprised that I don't see cash discounts in my part of town, or, for that matter, discounts at any other merchants. If I'm about to pay for a new piece of furniture with Amex, shouldn't the vendor offer me 3% off to pay by cash? It's in their best interest - costs less, lower chance of fraud, no chance of chargeback, etc.
So I'm surprised that I don't see cash discounts in my part of town, or, for that matter, discounts at any other merchants. If I'm about to pay for a new piece of furniture with Amex, shouldn't the vendor offer me 3% off to pay by cash? It's in their best interest - costs less, lower chance of fraud, no chance of chargeback, etc.
That's why I always tend to ask if they offer any cash discounts when making purchases over a couple hundred dollars at independent stores. About a quarter of the time they give a big enough discount to make it worthwhile (and the rest of the time I whip out my SPG Amex).
#58
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No alternative other than pay by a debit card issued by an Australia bank. You need to pass a 100 pts test in order to open an account with an Australian bank, IN PERSON, in Australia.
It is not just Australia.
Last year I bought tickets on ClickAir (Spainish LCC), the CC fee was like 5 or 7 Euros on 2 tickets worth 30 Euro each before small taxes.
The British Railway also charges CC fee when you purchase Rail tickets online.
It is not just Australia.
Last year I bought tickets on ClickAir (Spainish LCC), the CC fee was like 5 or 7 Euros on 2 tickets worth 30 Euro each before small taxes.
The British Railway also charges CC fee when you purchase Rail tickets online.
#59
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If CC is to pass the charges onto me and cancelling benefits, heck I'm cancelling the card and just stick to paying all of my bills through my bank's online bill pay option. Why should people like me, who creates a spreadsheet of his expenses and responsibly pays off his cards every month (well, I pay it off on a weekly basis thanks to online banking, online billpay and online CC statements) be dinged for people who can't keep balance their checkbooks straight?
#60
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This is just posturing by the banks in an effort to rally support in defeating the current proposals in congress. Charging interst from the date of purchase would be insane, as anyone who manages their money responsibly would simply retire any card that implemented such a change. The banks would be walking away from billions in merchant fees.