[Michael G.]

I could never buy in to the thought of "Don't use a credit card because you'll overspend."
With a little common sense, wouldn't you know if you overspent? DUH!

[retiredguy123]

Originally Posted by Michael G.

I could never buy in to the thought of "Don't use a credit card because you'll overspend."
With a little common sense, wouldn't you know if you overspent? DUH!

A lot of people don't have any common sense.

[Kelevision]

Originally Posted by Michael G.

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It’s the credit card companies, not the business who charge the fees. The businesses, mostly small privately owned businesses, lose quite a bit of money in credit card fees, which is why they charge the customers. Call your bank and complain. Don’t take it out on the small business owner. I believe debit cards are free of fees at least.

[rsmurano]

I never pay with cash unless I get a discount. I was writing out a $30k check for our lanai work and the salesman told me they would take a cc too with no fees, I tore up the check and gave them my wife’s Starbucks cc and she got 4 free drinks a week for a year for free. Never carry a balance on the cc’s. I use a cc to buy a .80 cent drink at Walmart.
For using cc’s, you know how many free cruises we have been on?

[Pugchief]

Originally Posted by Kelevision

It’s the credit card companies, not the business who charge the fees. The businesses, mostly small privately owned businesses, lose quite a bit of money in credit card fees, which is why they charge the customers. Call your bank and complain. Don’t take it out on the small business owner. I believe debit cards are free of fees at least.

Most small businesses are paying in the neighborhood of 3.5% + per item fee + monthly fee + extra fees for rewards cards. Debit cards (PIN based, not signature which is processed like a credit card) is typically a flat fee (maybe 50 cents) regardless of the sale amount.

While I am generally opposed to any government involvement in the private market, with the volume of CC sales these days, some major reform would go a long way toward improving the economy. There is no reason to have the insane amount of fees, variability in transaction costs, and high percentages charged.

[retiredguy123]

Originally Posted by Pugchief

Most small businesses are paying in the neighborhood of 3.5% + per item fee + monthly fee + extra fees for rewards cards. Debit cards (PIN based, not signature which is processed like a credit card) is typically a flat fee (maybe 50 cents) regardless of the sale amount.

While I am generally opposed to any government involvement in the private market, with the volume of CC sales these days, some major reform would go a long way toward improving the economy. There is no reason to have the insane amount of fees, variability in transaction costs, and high percentages charged.

Personally, I think that most small businesses could not survive without credit card sales. They are free to require customers to pay cash or to pay a fee to use a credit card, but most do not because they would lose sales. The banks are providing a convenient means for customers to pay with a credit card and the merchants benefit in increased sales and guaranteed receipt of their money. The banks make most of their money from high interest payments made by customers who cannot manage their cash flow. For the banks and the merchants, it is a win-win situation. More Government regulation of credit card fees would hurt both banks and merchants. My opinion.

[MrChip72]

Originally Posted by tophcfa

Hmmm, I see it the other way. I want to pay for many things with cash and am being forced to pay using other methods. Cash is king, and it’s not subject to digital theft.

Cash hasn't been king in a LONG time.

Physical theft is much more likely to happen than digital theft. Your money is almost infinitely safer in a bank than under your mattress or in your wallet.

Last year I was selling a large item for around $2000 at a yard sale I had two interested buyers. One walked up offering $200 less saying "cash is king", the other guy offered to e-transfer me the exact same amount that the other guy offered. I sold it to the guy that saved me an extra trip to the bank.

Credit cards are better anyways if you get rewards. I've been on countless flights and cruises for free just for using credit cards for most things even though I always pay off the balance.

[Pugchief]

Originally Posted by retiredguy123

Personally, I think that most small businesses could not survive without credit card sales. They are free to require customers to pay cash or to pay a fee to use a credit card, but most do not because they would lose sales.

Agree with both statements.

The banks are providing a convenient means for customers to pay with a credit card and the merchants benefit in increased sales and guaranteed receipt of their money.

Agree. And the banks are certainly entitled to compensation for that convenience. Just not at the ridiculous margins they are currently enjoying. IMO and prob also that of every other small business owner.

The banks make most of their money from high interest payments made by customers who cannot manage their cash flow.

Prob also true, but they're also making a boatload of money on merchant fees. I don't feel sorry for them.

More Government regulation of credit card fees would hurt both banks and merchants. My opinion.

It may hurt banks' profit margins (boo-hoo), but I disagree that it would hurt merchants. Merchants would welcome a reduction in the cost to process CCs. And why should the merchant pay more to process a rewards card that the bank decided to issue to the consumer? If the bank wants to do that, the bank should eat the cost, not the merchant.

[justjim]

Originally Posted by Haggar

Why would I not use a credit card? You're protected from wrong charges by the CC company.
I get 5% credit for gas purchases at Costco, 4% for gas purchases at other gas stations, 3% on restaurants using by Costco simple card, 2% on all other purchases using one of many cards.
I get 2% back paying my insurance bills using a credit card. Discover every quarter has a 5% reward on revolving categories. Some cards offer a bonus of hundreds for using a new card.

I get the use my money for a longer time. As opposed to many debit charges on my bank statements I just have a few payments to the credit card companies.

Because I use my cards for business and pleasure I get back more than a $1,500 a year in rebates.

So let somebody get my number. One call and I get credit for these charges and a new card sent to me.

To each their own.

I couldn’t say it any better myself. Using a credit card (Discover) or another just makes financial sense.

[justjim]

Originally Posted by Kelevision

It’s the credit card companies, not the business who charge the fees. The businesses, mostly small privately owned businesses, lose quite a bit of money in credit card fees, which is why they charge the customers. Call your bank and complain. Don’t take it out on the small business owner. I believe debit cards are free of fees at least.

Small business get robbed too because they have cash. I never use a debit card because if the card gets “hacked” they can clean out your bank account.