money- financing and credit hijacked thread

[dustman_stx]

Originally Posted by KDHfan

I beg to differ. That money comes from the rest of the credit card crowd that can't pay it off every month and pay 14% or more in interest (I don't know my actual percentage because we pay off every month). For those who they do pay back 2-3%, it's still a big win for them cause the "pay off each month" crowd is probably a fraction of those who pay interest to them.


2015 Coachmen Apex 288BHS
2014 Toyota Tundra 5.7L CrewMax

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True. The % retailers pay is set, and it differs by company and what type of agreement they have. The type of card or rewards offered by that card make no difference to the retailers bottom line.

[wana65stang]

KDHfan Sorry I beg to differ with you, I have to pay the credit card company 1.25% of the transaction if a customer uses a credit card to make a purchase from me.If you think a credit company just gets money from people who carry a balance you are mistaken.I in turn charge more to the customer to cover my cost.

[Herk7769]

Originally Posted by jfrauts

KDHfan Sorry I beg to differ with you, I have to pay the credit card company 1.25% of the transaction if a customer uses a credit card to make a purchase from me.If you think a credit company just gets money from people who carry a balance you are mistaken.I in turn charge more to the customer to cover my cost.

My friend who owns a computer store often complains about the fees charged to her when she sells something. WORSE YET, she PAYS AGAIN if the item is returned!

So if I buy an item on my card for 100 bucks, she gets 98.00 from the card company. I then return it for 100.00 credit and she gets the unsellable item back and is charged another 2.00.

Net loss 4.00 plus the item's cost (unless it is bad; then she has to fight with the vendor to get a saleable replacement). If it is "good" she has to take time to test it; repackage it for re-sale as an "open box"; reduce the price to her cost; and HOPE the cycle does not repeat itself with the same item.

The ONLY reason she still takes plastic is that card holders BUY MORE than they would if they had to take cash out of their wallet.

[Iwritecode]

Originally Posted by jfrauts

KDHfan Sorry I beg to differ with you, I have to pay the credit card company 1.25% of the transaction if a customer uses a credit card to make a purchase from me.If you think a credit company just gets money from people who carry a balance you are mistaken.I in turn charge more to the customer to cover my cost.

Do you charge more to people who use credit cards or do you tack on an extra fee?

I know a lot of gas stations give a cash discount on their gas prices vs. using a credit card and I’ve seen a number of small businesses that have a minimum amount before they’ll accept a card.

There was one business that tried charging an extra fee for using a CC but it didn’t last long. I would think paying the CC fees would just be another cost of owning a business.

I tend to not frequent places that do this or that don’t take cards at all. I carry very little cash with me and just put everything on a card and pay off my balance every month. When my cashback reward gets high enough (which is basically free money) I use that to pay my bill as well.

[wana65stang]

Iwritecode Everybody pays the same; cash, debt or credit.But if we went back to the good old days of cash is King, I could drop prices a little. I do agree with Herk7769 people do buy more when they pay with plastic .

[jimdd810]

I own a small boat repair business. I don't accept credit cards. The fees would wipe me out. Even to deposit a check cost me fifty cents. That adds up.


Life is a highway!!!!!

[WolfWhistle]

Originally Posted by Herk7769

The ONLY reason she still takes plastic is that card holders BUY MORE than they would if they had to take cash out of their wallet.

Bingo!!

[Iwannacamp]

Merchants(vendors) have always had merchant fees to contend with. I guess it can be as little as .5ish to 4% or more depending on c/c type/manual or swipe, type of card(business/personal/corporate)etc... All these and more affect the discount rate plus merchant volume and type etc... We have ROA payments every month in the hundreds of thousands paid on c/c by customers...think that doesn't hurt. On the other hand a lot of debit cards are generally much less.

They are hard on the bottom line of vendors.


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[WolfWhistle]

Its been awhile since I knew for sure, but the amount paid by the bank to us (the merchants discount), rather the amount deducted from the purchase price, ranged from a low of 2-1/2-% (major cards) to 6% to 7% (Amex), as I recall. Wonder why many merchants won't accept Amex? The business was a small $2M gross / year antique business that I worked for PT. I can't imagine the low "fees" a big company like Walmart would get. I think we can safely assume, we all pay more for an item, because credit cards are accepted by most. So why not, get some kind of credit or money back from the card company. The key is buy what you need and pay it off when due. It is the psychological factor or effect that MOST all of us over-spend when using plastic that makes the big-credit-card-company world go around. Here's an interesting WiKi page on the subject of interchange fees:
Interchange fee - Wikipedia, the free encyclopedia

[ironj]

Originally Posted by Herk7769

My friend who owns a computer store often complains about the fees charged to her when she sells something. WORSE YET, she PAYS AGAIN if the item is returned!

So if I buy an item on my card for 100 bucks, she gets 98.00 from the card company. I then return it for 100.00 credit and she gets the unsellable item back and is charged another 2.00.

Net loss 4.00 plus the item's cost (unless it is bad; then she has to fight with the vendor to get a saleable replacement). If it is "good" she has to take time to test it; repackage it for re-sale as an "open box"; reduce the price to her cost; and HOPE the cycle does not repeat itself with the same item.

The ONLY reason she still takes plastic is that card holders BUY MORE than they would if they had to take cash out of their wallet.

X2 ..hence why almost all electronic retailers charge a restock fee...or only offer store credit. We DO NOT give cash back unless its a chargeback ...nope...not even on CASH purchases....

The fees can get nuts ...in one year my small business paid the cc processors over 25k$ in fees. We dont even take amex anymore, and we offer other alternate payment methods like paypal which are even WORSE!. It used to be simple, but now with technology, and compliance and safety issues its become a "necessary" evil. ..or "the price of success" as my banker puts it...so I can only imagine what walmart pays! We cant/wont do transactions under 10$ either. It is what it is...we do offer a 5% cash discount, which used to be popular...but hardly any one in our sales demographic uses cash anymore!

Anyway i used to shun cc and cut them up....learned real fast u cant buy some things without credit(GOOD CREDIT..which is the opposite of paying cash and no credit, but thats for another thread!! Lol) so I got one...then realized that as much cash as we we using monthly both at home and at our business, we should be taking advantage of the rewards..put EVERYTHING on the cards then pay it off...we woulda spent it either way right? Plus i dont have to pay for 30days so its a free loan. If I do my job well I can sell a product 2-3 times before I ever even pay for it......i see it like my taxes....imma pay one way or the other....so I try and minimize the % with "deductions/rewards"... what a convoluted mess finance/ credit cards have become!!

[rockfordroo]

what a convoluted mess finance/ credit cards have become!!

"Oh what a tangled web we weave, when first we practice to deceive."

[Terier]

When refunds are needed it can be quicker with a credit card vs. cash. One downsize to paying cash is that some stores will give a refund via mailing a check to the customer.

I brought a couch with mostly cash and use my debit card for the remaining balance of about $20. I waited longer than the 12 business days for the check which didn't include the small amount from my debit card as I was instructed it would. It too another 6 days for the debit card credit to hit my checking account. If I had to do it over again I would use a CC and turn around paying off the purchase in full when the statement arrives. And some stores will keep records of credit card transactions which comes in handy if you don't have the receipt with you. (Target, Lowes, Home Depot)

My previous couch was damaged while in warehouse storage and they issued a check for replacement. I felt rushed to get this matter taken care of and ended up changing my mind on the replacement couch. As I waited for the refund to arrive I did find the perfect replacement couch elsewhere.

[Phil57]

We use an Amex card from the Executive membership at Costco. I use it for everything and even charge my cell phone bill on it. I do this because of the rebate I get back. It adds up and we never have a amount we can't pay at the end of the month. Amex is great if you have a disputed charge or a store fails to provide what you bought. Amex will handle the dispute for you and almost always we have a good outcome. As for the retailer I don't think they want to go back to taking checks from everyone. I used to be a restaurant manager in the early 80's and bad checks cost us a lot in loss and time chasing down the deadbeats. I don't carry much cash.


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