Quote:
Originally Posted by Toymeister
I do visa with 3% back on everything (no categories) and I go on line and pay it off about six times a month. Never am I surprised that I have a high balance. Once a year I look to see how much I have.
I keep my cash is a passbook savings that yields 2% until I invest it.
It beats lugging change to the bank. I do totally get the concept of found money but 3% on everything is a great way to save.
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A friend used to own a retail store. Moving to Florida and being retired my taxes are far lower than they used to be. There was that old line about a cash business. My view if you make a dollar and pay 30% top tax rate on your money you are making seventy cents for every dollar you earn.
My friend pointed out that due to rebates few people pay CASH.
Also,the credit card fees that the retailer pays to the credit card companies if, I recall are like fifty cents per transaction plus 2% of the gross amount. Simple explanation why large stores such as Wallmart, Home Depo, Lowes all offer incentives for you to open an account with them and extra discounts if you use their card.
The stores must take credit cards because WE insist on using them. Due to contracts that the credit cards have the power to impose due to our insisting stores take them, stores cannot offer a lower CASH price and current contracts prevent the old system of minimum dollar amount of a sale to use a credit card.
Using a credit card to purchase in many cases gives the buyer additional power. You can dispute a charge-withhold payment-due to an issue without damaging your credit. You can change your mind on the purchase within 24 hours by using a credit card with no penalty.
I used the above power once in my life. Dispute with the moving company that took us to the villages. The dispute was for about $1500 bucks. Took months on withholding payment.
In the end I WON.