pay as we go
so guys this is a good group to ask how many of you guys will not use charge cards this year as of 2010 if I can't pay for it i can't have it but my kids are not living with me so that helps a lot and the high cost to use charge cards. That make me think that how can a card company make more money then the people that make the things that we buy some how we have to make things better for the young kids
Views: 26
Replies to This Discussion
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Permalink Reply by Indentured Servant on -
I will use my credit card this year as I do every year but I never, ever carry a balance. My wife and I each have a card that we use for internet orders, event tickets, travel etc but the balance is pain in full each month.
Our cards are through a credit union and they don't seem to mind that they never make any money on us. Every bank owned credit card we've ever had dropped us specifically because we never carried a balance. So much for being responsible.
Bill
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Permalink Reply by Steve W on -
Ditto Bill. Oh did I say that? We also use a credit union charge card and never carry a balance. I know the dangers and pitfalls, but the convenience and accountability are trump.
Indentured Servant said:I will use my credit card this year as I do every year but I never, ever carry a balance. My wife and I each have a card that we use for internet orders, event tickets, travel etc but the balance is pain in full each month.
Our cards are through a credit union and they don't seem to mind that they never make any money on us. Every bank owned credit card we've ever had dropped us specifically because we never carried a balance. So much for being responsible.
Bill
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Permalink Reply by george palmer on -
I think you guys have it we have too make them treat us like they work for us how can they make so much money .:-{
Steve W said:Ditto Bill. Oh did I say that? We also use a credit union charge card and never carry a balance. I know the dangers and pitfalls, but the convenience and accountability are trump.
Indentured Servant said:I will use my credit card this year as I do every year but I never, ever carry a balance. My wife and I each have a card that we use for internet orders, event tickets, travel etc but the balance is pain in full each month.
Our cards are through a credit union and they don't seem to mind that they never make any money on us. Every bank owned credit card we've ever had dropped us specifically because we never carried a balance. So much for being responsible.
Bill
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Permalink Reply by True Money on -
The credit card companies don't make all of their money from their patrons. They make their money from purchases with the cards. Even though many people do the right thing and pay their balance every month with no interest, the credit card companies are still making tons from the purchases of which you are still paying interest. The most prevalent credit card companies such as VISA and MASTERCARD are charging businesses between 6% and 10% for every purchase. I think American Express charges businesses 12% or more for every purchase. Most people are under the impression that credit card companies make money only from the interest owed by patrons. Every business that accepts credit cards must increase prices of its products and/or services to cover these charges.
This is why I only use cash "Legal Tender" for every possible transaction. My credit card (singular!) has a very strict low limit and is used only when required. I practice what I preach and encourage everyone to use CASH only! If more people used cash instead of credit cards, the credit card companies will be forced to charge higher percentage fees on purchases. Businesses will either have to increase their prices and accept the credit cards, or not accept the credit cards, lower their prices and make more money simply for accepting CASH only! This savings will be passed onto the customer. So, instead of paying $110 at the grocery store, you would be paying only $90 for the same purchase if we used CASH only! These savings would be everywhere and would actually boost the economy by lowering prices and strengthening the dollar.
-True Money!
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Permalink Reply by Mrinal Jain on -
It seems True Money is years behind in Credit Card Processing Industry. In India a Good Merchant pays 1% as processing fee (VISA / MASTERS) for the total volume Batched through credit card from his outlet. These 2 control possibly 99% of the credit Card Processing. Even in USA the present credit card processing fee for these 2 processors is not more than 3% and could be as low as 1.5%. I think there is no harm in using them as long as you pay up in time and not get looped into interest charges. Paypal is very expensive but it is difficult to avoid it if you need to buy some good coins through Ebay.
Cheers
Mrinal
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Permalink Reply by True Money on
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Sorry Mrinal, you are very incorrect! The fees I quoted are accurate within the United States!
-True Money!
Mrinal Jain said:It seems True Money is years behind in Credit Card Processing Industry. In India a Good Merchant pays 1% as processing fee (VISA / MASTERS) for the total volume Batched through credit card from his outlet. These 2 control possibly 99% of the credit Card Processing. Even in USA the present credit card processing fee for these 2 processors is not more than 3% and could be as low as 1.5%. I think there is no harm in using them as long as you pay up in time and not get looped into interest charges. Paypal is very expensive but it is difficult to avoid it if you need to buy some good coins through Ebay.
Cheers
Mrinal
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Permalink Reply by True Money on
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I found some information on Yahoo. This should explain a little more. Notice that there is not only the processing fee percentage, but also other additional fees charged per purchase and at a monthly rate to the buisiness! Please read and inform yourselves!
"Some third party merchant processors charge as much as 15 percent of each transaction. These third party accounts are geared towards small businesses that cannot qualify for a merchant account on their own. Since the third party is taking a risk by offering you this account, the percentage is much higher. Learn how to Find the Right Merchant Account Provider.
Each card issuer charges a different percentage rate. Visa and Mastercard usually charge the least, while Discover and American Express typically charge a higher percentage.
This is something to consider, not only when setting prices for your products, but also when deciding which cards you are going to accept. Visa and Mastercard are the most popular cards, so it behooves you to accept at least one of these two. It will be up to you to decide whether you need to add American Express and Discover.
In addition to the percentage rate, there are also transaction fees. This transaction fee is charged on each and every purchase processed through your merchant account provider, and is typically from $0.25 to $0.50 per transaction."
Keep in mind that most chain stores do not qualify for "large merchant" accounts!
-True Money (via Yahoo)!
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Permalink Reply by Gary on -
Dont believe everything you read on the NET......
TM....post another coin!!
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Permalink Reply by Mrinal Jain on
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This is a part of report from Business Week of October 2007
"The issue: interchange fees, the roughly 2% of every credit card swipe that goes to the bank that issued the card. That’s a real cost for small merchants that do a lot of credit card sales, particularly in thin-margin businesses like grocery or convenience stores. (7-Eleven is lobbying aggressively on this issue.)"
Things have changed dramatically since then. I personally take care of fees for as many as 2500 USA merchants - nothing is more than 3%. Those with a little higher are the internet Gateways..
Mrinal
True Money said:I found some information on Yahoo. This should explain a little more. Notice that there is not only the processing fee percentage, but also other additional fees charged per purchase and at a monthly rate to the buisiness! Please read and inform yourselves!
"Some third party merchant processors charge as much as 15 percent of each transaction. These third party accounts are geared towards small businesses that cannot qualify for a merchant account on their own. Since the third party is taking a risk by offering you this account, the percentage is much higher. Learn how to Find the Right Merchant Account Provider.
Each card issuer charges a different percentage rate. Visa and Mastercard usually charge the least, while Discover and American Express typically charge a higher percentage.
This is something to consider, not only when setting prices for your products, but also when deciding which cards you are going to accept. Visa and Mastercard are the most popular cards, so it behooves you to accept at least one of these two. It will be up to you to decide whether you need to add American Express and Discover.
In addition to the percentage rate, there are also transaction fees. This transaction fee is charged on each and every purchase processed through your merchant account provider, and is typically from $0.25 to $0.50 per transaction."
Keep in mind that most chain stores do not qualify for "large merchant" accounts!
-True Money (via Yahoo)!
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Permalink Reply by Mrinal Jain on
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You said it Correct Gary - Here is a British India Coin you guys may like - A 1918 15 Rupees Gold Coin
Gary said:Dont believe everything you read on the NET......
TM....post another coin!!
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Permalink Reply by Gary on
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Well played Jain..............Cant beat fact!
Mrinal Jain said:This is a part of report from Business Week of October 2007
"The issue: interchange fees, the roughly 2% of every credit card swipe that goes to the bank that issued the card. That’s a real cost for small merchants that do a lot of credit card sales, particularly in thin-margin businesses like grocery or convenience stores. (7-Eleven is lobbying aggressively on this issue.)"
Things have changed dramatically since then. I personally take care of fees for as many as 2500 USA merchants - nothing is more than 3%. Those with a little higher are the internet Gateways..
Mrinal
True Money said:I found some information on Yahoo. This should explain a little more. Notice that there is not only the processing fee percentage, but also other additional fees charged per purchase and at a monthly rate to the buisiness! Please read and inform yourselves!
"Some third party merchant processors charge as much as 15 percent of each transaction. These third party accounts are geared towards small businesses that cannot qualify for a merchant account on their own. Since the third party is taking a risk by offering you this account, the percentage is much higher. Learn how to Find the Right Merchant Account Provider.
Each card issuer charges a different percentage rate. Visa and Mastercard usually charge the least, while Discover and American Express typically charge a higher percentage.
This is something to consider, not only when setting prices for your products, but also when deciding which cards you are going to accept. Visa and Mastercard are the most popular cards, so it behooves you to accept at least one of these two. It will be up to you to decide whether you need to add American Express and Discover.
In addition to the percentage rate, there are also transaction fees. This transaction fee is charged on each and every purchase processed through your merchant account provider, and is typically from $0.25 to $0.50 per transaction."
Keep in mind that most chain stores do not qualify for "large merchant" accounts!
-True Money (via Yahoo)!
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Permalink Reply by Lureuin on -
Having been in on the initial set-up end of credit card acceptance at a former place of employment in 2004 (which was not a large retailer or chain store), the going rates were then 1.3% for Visa and Mastercard; 2% for Discover and 3% for American Express. That was the CC companies cut of every purchase. Most merchants have built in an extra 2 to 5% on all merchandise to cover what the CC companies are going to get. When buying a big ticket item you can usually get the merchant to drop the price anywhere between 3 and 5% if you pay cash. I regularly talk places like Lowe's down 5 to10% when making purchases over $300 when paying with cash. Just talk to a manager when spending over $300 and you'd be surprised how quickly they will cut a deal.
As for using credit cards, I have at least one of each of the big names and never carry balances. I have never had a company cancel a card I carry, even though I rarely use them.
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