Should we prohibit prisoners'-dilemma marketting?

[Sal]

Hmmm... I somehow doubt it. I'd immagine most of us just make sure we have the money in the bank before we charge anything to the card just to collect the 'rewards' and then set it up for free automatic payment from the checking account every month.

While I'm sure they make some money from the interest rate, I doubt it's that much.

millions upon millions... they make so much money in fact that they are expected to lose a certain amount on cards that will never be collected upon...because people will charge and charge and charge...part of your lack of understanding here is your generation...the younger generation that have bought huge homes beyond their means are aware they will never pay off their mortgages...the bank also know this...some generations will live in perpetual debt. Talk to some bank managers.

Cards are the same.

 

[Machjo]

Nope- many do not
Canadian household debt hits new high - Business - CBC News

http://www.statcan.gc.ca/pub/75-001-x/2012002/article/11636-eng.pdf

Perhaps. It still does nto change the fact that if the credit card company charges the shop (or restaurant or whatever) for my credit card transaction, it's a no-brainer that it must pass the price on to me in the form of higher prices. I'd rather know why prices are so high rather than have it as a hidden fee. So ban credit card companies from charging businesses for my credit card transaction and charge me instead. That way I'll actually stop using my card, and anyone else who uses it will pay the cost himself, and then I could just enjoy cheaper goods and services.

Ban restaurant and other such rewards points and then I won't need to carry a deck of cards in my wallet anymore and let them compete on price and quality rather than gimmicks.

 

[Goober]

Perhaps. It still does nto change the fact that if the credit card company charges the shop (or restaurant or whatever) for my credit card transaction, it's a no-brainer that it must pass the price on to me in the form of higher prices. I'd rather know why prices are so high rather than have it as a hidden fee. So ban credit card companies from charging businesses for my credit card transaction and charge me instead. That way I'll actually stop using my card, and anyone else who uses it will pay the cost himself, and then I could just enjoy cheaper goods and services.

Ban restaurant and other such rewards points and then I won't need to carry a deck of cards in my wallet anymore and let them compete on price and quality rather than gimmicks.

What products do you consider to be expensive?

 

[Machjo]

What products do you consider to be expensive?

I don't know.

The idea for this thread came from a local bakery. They had a sign on the window asking if we minded using cash or debit instead of credit card because of the charges they incurred from our credit card use.

This let me to think if that's the case, then certainly the shop must get the money to pay these fees from somewhere, and the locgical answer must be in the price of the product. So while we might consider them normal priced 'casue we're used to it, we do have to ask the question: how much does our credit card use actually push the cost up.

 

[karrie]

Hmmm... I somehow doubt it. I'd immagine most of us just make sure we have the money in the bank before we charge anything to the card just to collect the 'rewards' and then set it up for free automatic payment from the checking account every month.

While I'm sure they make some money from the interest rate, I doubt it's that much.

You think most of North America is smart about debt? What? Where have you been living?

 

[Angstrom]

What the vendor loses in card fee, it will make it up in bulk sell.
It's proven that someone buying with credit will likely spend 20% more then if he bought with cash.

So the 4% fee is off balences by 20% more sells.
Question answered. If it wasen't true, credit cards would not exist.

The card then rewards you 1% and everyone is happy.

 

[Machjo]

What the vendor loses in card fee, it will make it up in bulk sell.
It's proven that someone buying with credit will likely spend 20% more then if he bought with cash.

So the 4% fee is off balences by 20% more sells.
Question answered. If it wasen't true, credit cards would not exist.

The card then rewards you 1% and everyone is happy.

I'm not sure what you're saying here. Are you saying that widespread use of credit cards is pushing the price of goods up 20%?

 

[IdRatherBeSkiing]

I'm not sure what you're saying here. Are you saying that widespread use of credit cards is pushing the price of goods up 20%?

20% more sales. Price is probably inflated 3-4%.

 

[damngrumpy]

There is a percentage charge to the business when you use some credit cards
I believe its the cash back ones. I heard about this from a business owner and
on a program I think it was Marketplace but not sure it was a while ago. Three
are businesses out there that want you to use debit because its less cost to them.
I have a credit card use it sparingly and a debit card, Mostly I use cash best way.
So many companies want you to use their store credit card but everyone you take
out lessens your credit overall I understand so I stay away from them period.

 

[karrie]

My pet peeve is the stores that expect you to pay to use debit. I tend to cancel my debit purchase, and hand them my credit card instead, pointedly explaining to them that they'd have saved themselves money if they weren't charging for debit.

 

[IdRatherBeSkiing]

There is a percentage charge to the business when you use some credit cards
I believe its the cash back ones. I heard about this from a business owner and
on a program I think it was Marketplace but not sure it was a while ago. Three
are businesses out there that want you to use debit because its less cost to them.
I have a credit card use it sparingly and a debit card, Mostly I use cash best way.
So many companies want you to use their store credit card but everyone you take
out lessens your credit overall I understand so I stay away from them period.

All credit cards charge for use. Amex is most expensive I believe. But if you are big enough, you can probably swing a deal. I think even debit (interac) charges something as well.

 

[PoliticalNick]

I'm talkiing about things like Subway points cards and such. Restaurants are notorious for this. You know, by x meals and get the next one free? Why not just ban these programmes and compete on price and quality. Scrap the gimmicks.

Oh sure, lets ban sale prices and lotteries too. You are an imbecile. In today's market they already offer the lowest price reasonably possible. The credit card fees are normally somewhere between 1.5% and 2.9% of every transaction depending on volume with that type of card (visa/MC/amex) no matter who issued it. Another thing you might want to think about is not everyone gets a no-fee card and not everyone pays it off each month. There is a good reason Visa shows billions/yr in profit and it isn't because they rip off the retailer. The retailer normally gets the POS terminal(s) for free along with service on them if required and as long as they follow procedure they are indemnified from loss by stolen cards, in other words they are guaranteed timely payment whether you pay your bill on time or the card is stolen. It is actually quite a valuable deal for the retailer. You may find 1 or 2 mom & pop stores with such a low volume they get dinged on a per-transaction basis but as a rule the vendor is quite silly to not accept cards.

This is the second time recently you have come out with a lame-brained idea based on something you obviously have no clue about.

 

[Goober]

My pet peeve is the stores that expect you to pay to use debit. I tend to cancel my debit purchase, and hand them my credit card instead, pointedly explaining to them that they'd have saved themselves money if they weren't charging for debit.

Stores can charge fees for debit use. Problem is the company they sign up with has to approve it. Has to be posted. Otherwise it is illegal.
No fees can be added for a credit card.

Oh sure, lets ban sale prices and lotteries too. You are an imbecile. In today's market they already offer the lowest price reasonably possible. The credit card fees are normally somewhere between 1.5% and 2.9% of every transaction depending on volume with that type of card (visa/MC/amex) no matter who issued it. Another thing you might want to think about is not everyone gets a no-fee card and not everyone pays it off each month. There is a good reason Visa shows billions/yr in profit and it isn't because they rip off the retailer. The retailer normally gets the POS terminal(s) for free along with service on them if required and as long as they follow procedure they are indemnified from loss by stolen cards, in other words they are guaranteed timely payment whether you pay your bill on time or the card is stolen. It is actually quite a valuable deal for the retailer. You may find 1 or 2 mom & pop stores with such a low volume they get dinged on a per-transaction basis but as a rule the vendor is quite silly to not accept cards.

This is the second time recently you have come out with a lame-brained idea based on something you obviously have no clue about.

http://www.ctvnews.ca/business/trib...-to-credit-card-rules-for-merchants-1.1379299

 

[PoliticalNick]

So why do some shop across the border?

What Karrie said and also because many item are significantly cheaper. Consider a strong exchange rate in the mid-high $0.90s and something that cost $5 in Canada will be only $3 in the US with the exchange. My parents and sisters live within a few miles of the border in Aldergrove/Langley and cross all the time. Dad saves $70 - $100 filling up his motor-home. They estimate $2-3000/yr in savings minimum.

I don't know.

The idea for this thread came from a local bakery. They had a sign on the window asking if we minded using cash or debit instead of credit card because of the charges they incurred from our credit card use.

This let me to think if that's the case, then certainly the shop must get the money to pay these fees from somewhere, and the locgical answer must be in the price of the product. So while we might consider them normal priced 'casue we're used to it, we do have to ask the question: how much does our credit card use actually push the cost up.

It's a bakery. Notoriously one of the lowest profit retailers. The guy probably has 3%-5% of each transaction as a fee and wants to make an extra few bucks. I don't blame him for trying but his deal with the bank would mean he can't refuse the credit card.