51–60 of 102 posts
Do the retailers actually pay the fees? I always assumed that this is pushed into the price to the consumer.
If the card issuer can decide the fee, why don't all cards charge the max fee?
Earlier quoted context omitted.
When I was in the US (Nevada and Cali) I was so surprised how many places don’t accept contactless payment. Here in Hungary, even the smallest convenience stores accept it.
I used contactless and Chip n Pin in remote Botswana 2 years ago, and this summer in America I was still repeatedly asked to sign for stuff. The future. It's not in America.
If the card issuer can decide the fee, why don't all cards charge the max fee?
I'm incredibly naive but I don't understand why card networks would ever WANT to raise their percentage rates... Hear me out: - It is perfect rent collecting: minimal costs, benefits hugely from scale, high barrier for competitor entry. You're an "invisible" profit center, if done right. - It is percentage of transaction: So increases naturally with inflation and your client's success. Loses little on your client's f…
This basically describes the Planet Fitness model. They sign up thousands of people around New Year's, none of them ever show up, and a handful of them can't be bothered to go into their location and cancel, so they just end up paying $10 / month forever.
The whole existence of credit card rewards seems like a failure of the system. Since merchants agree not to charge more to high fee credit card customers, all the other customers end up paying the fees for those rewards. So everyone has to use a credit card with rewards to compensate for that loss and the ultimate losers are the suckers who pay with cash or whatever else. I refuse to play those games and it surely co…
I think you're overestimating the complexity of all this. I pay most things via a 2% cash back card. Just the monthly statement to manage, no need for multiple cards, and no keeping track. I get $500/year back on health insurance premiums alone from that, let alone all the other spending. Everything except my mortgage can be run through it.
Earlier quoted context omitted.
I think you're overestimating the complexity of all this. I pay most things via a 2% cash back card. Just the monthly statement to manage, no need for multiple cards, and no keeping track. I get $500/year back on health insurance premiums alone from that, let alone all the other spending. Everything except my mortgage can be run through it.
Perhaps it's easy enough in America. Where I am, there are multiple rewards programs separate from credit cards. Some shops have their own special card, and some are part of a bigger scheme with a common card. It's all a mess. I hadn't thought of using it to pay for big things like a house or health insurance!
There are certain credit cards with higher rewards at certain companies - if you buy a lot at Amazon, for example, it makes sense to get their 5% cash back card. Target has one as well.
Do the retailers actually pay the fees? I always assumed that this is pushed into the price to the consumer.
They do, in the sense that the consumer is charged the same price independently of which card they paid with.
So do retailers like paying the fees for other cards, or is the headline just apple bait?
The article states that the fees are higher because it is designated an "elite" card. American Express cards also have a higher fee than the standard Visa or Mastercard and plenty of retailers complain about that or refuse to accept Amex.