Credit cards cost even more than debits - you just pay a different way. The fee for using a credit card is 3% MINIMUM, and only a large retailer can get that rate. For small businesses it's more like 10%! That goes directly into the prices you pay.
The only reason more people aren't aware of this is that government has been in the pocket of the credit card companies for a long time - that's why it's illegal for the retailer to actually put the amount you're paying to Visa or Mastercard on the bill, where it belongs. Some have gotten around that by offering a "cash discount", but it's a legal grey area.
Credit card companies are the worst of finance industry, and that's really saying something.
There's overhead to maintaining a cash system too, of course, borne by the government that prints the cash (and polices counterfeiting, etc). But I really wonder how much extra we'll be paying in assorted "service charges" with every new electronic-cash scheme that comes along. If it's coming from banks and other financial empires, you can assume you're being bilked, because the only reason they ever have to offer a new service is to find a new way to skim your money.
People complain about paying taxes all the time; what I object to is bank charges. And the "take your business elsewhere" is ridiculous - they're all the same (even credit unions are only marginally better these days).
either way. If they accept credit cards it doesn't always reflect in price because for a 2.5% loss (visa, mc) or 4.5% (amex) they don't have to screw with bounced checks, getting robbed because they have loads of cash on hand.
Not to mention if they do adjust the rate you don't get a "discount" for buying with cash as that doesn't give the store any benefit (people would avoid using cards there).
I agree with the ideas espoused above, but wanted to correct some factual errors.
The fee for using a credit card is 3% MINIMUM, and only a large retailer can get that rate. For small businesses it's more like 10%!
Running a small business in Central California, I had an account with Cardservice Intl [cardservice.com] and paid 1.59%, with an annual volume somewhere around $80,000-100,000. 10% is simply rediculous, and it's a good idea a credit card merchant account isn't that expensive!
that's why it's illegal for the retailer to actually put the amount you're paying to Visa or Mastercard on the bill.
It's not illegal - it's just against the contract that you sign to get your merchant account. The contract actually says that you won't charge extra for credit card transactions.
You won't go to jail, but you might lose your merchant account!
I think you had an account with a third-party go between, essentially a clearinghouse that is a conglomerate of smaller merchants. These aren't legal everywhere (again probably because they reduce credit card company profits). I'd be surprised to hear of a merchant account directly with Visa or Mastercard at that rate.
Related to this, Australia has recently introduced laws guaranteeing retailers the right to pass on credit card costs. Most retailers have been holding back on exercising this right, seeing what the competition does, but some big companies (such as QANTAS) are getting in on the act. eg. QANTAS has announced it will charge 1% extra when a credit card is used. One of the two dominant retail companies in Australia (Coles-Myer) is also said to be 'evaluating its options'.
Anyway, this sort of indicates that when the entire equation is looked at: cash handling costs vs. credit card costs, cash comes out cheaper for retailers (otherwise companies wouldn't be charging more for credit).
--banks, starting with central banks on down, ARE one of the biggest scams running. Start with the premise they can "loan" you money-called fractional reserve, ie, they only have a fraction of what they can claim as a reserve- they don't have, then charge you "interest" on it. Sweet deal for their fat tushies.
Governments like to own the "money" because of the lawful thievery that goes along with this "central banking" and "tax" scam. Big bankers run the world, run the wars, finance all the sides. bah humbug, filthy creatures. Back a long time ago the founders flirted with paper money, it was a disaster (not worth a continental), they went back to precious metals based money, that worked until they switched again.
People who love fiat money also really believe that they can pick any day and the high numbers represented by the 'stock market' figures are all magically "worth" all this money and all this "stock" can all be changed into "money" that can purchase goods and services. I mean buck for buck,, like all the stock could be cashed in/sold at once and be "worth" what they are quoted at that day, ALL of it.. Past bubble I can't tell ya how many people I talked to who put x cash in, their magic beans dot bomb stock went to x3, then they "lost money", like every single one of them somehow could have gotten this high point "money". Just amazing, pure fairy tale, but so many so called adults still believe this.
It don't matter, people who can understand the difference between "wealth" and "money" will continue to do well, people who won't will one day wake up "bankrupt" and wonder why it happened when they were "rolling in dough" before, and "all set" with their "secure job".
People really have only two choices when it comes to learning from history, they "do" or they "don't".
"Be there. Aloha."
-- Steve McGarret, _Hawaii Five-Oh_
Banks (Score:1)
Shit, when banks take up more than half of the top 10 most profitable companies you know something is up.
Plus, how do they justify raising simple banking fees EVERY year? Debit, no thanks, I'll use my CC's which don't cost me a dime.
While I'm at it, I'd really like to stop writting checks. Be your own bank, stock your pillowcase!
Re:Banks (Score:2)
Re:Banks (Score:5, Informative)
The only reason more people aren't aware of this is that government has been in the pocket of the credit card companies for a long time - that's why it's illegal for the retailer to actually put the amount you're paying to Visa or Mastercard on the bill, where it belongs. Some have gotten around that by offering a "cash discount", but it's a legal grey area.
Credit card companies are the worst of finance industry, and that's really saying something.
There's overhead to maintaining a cash system too, of course, borne by the government that prints the cash (and polices counterfeiting, etc). But I really wonder how much extra we'll be paying in assorted "service charges" with every new electronic-cash scheme that comes along. If it's coming from banks and other financial empires, you can assume you're being bilked, because the only reason they ever have to offer a new service is to find a new way to skim your money.
People complain about paying taxes all the time; what I object to is bank charges. And the "take your business elsewhere" is ridiculous - they're all the same (even credit unions are only marginally better these days).
Hate to tell you this but you pay the fee (Score:2)
Not to mention if they do adjust the rate you don't get a "discount" for buying with cash as that doesn't give the store any benefit (people would avoid using cards there).
Re:Banks (Score:5, Informative)
The fee for using a credit card is 3% MINIMUM, and only a large retailer can get that rate. For small businesses it's more like 10%!
Running a small business in Central California, I had an account with Cardservice Intl [cardservice.com] and paid 1.59%, with an annual volume somewhere around $80,000-100,000. 10% is simply rediculous, and it's a good idea a credit card merchant account isn't that expensive!
that's why it's illegal for the retailer to actually put the amount you're paying to Visa or Mastercard on the bill.
It's not illegal - it's just against the contract that you sign to get your merchant account. The contract actually says that you won't charge extra for credit card transactions.
You won't go to jail, but you might lose your merchant account!
Re:Banks (Score:2)
Re:Banks (Score:1, Informative)
Re:Banks (Score:1)
Re:Banks (Score:1)
Anyway, this sort of indicates that when the entire equation is looked at: cash handling costs vs. credit card costs, cash comes out cheaper for retailers (otherwise companies wouldn't be charging more for credit).
Re:Banks & usury (Score:1)
Governments like to own the "money" because of the lawful thievery that goes along with this "central banking" and "tax" scam. Big bankers run the world, run the wars, finance all the sides. bah humbug, filthy creatures. Back a long time ago the founders flirted with paper money, it was a disaster (not worth a continental), they went back to precious metals based money, that worked until they switched again.
People who love fiat money also really believe that they can pick any day and the high numbers represented by the 'stock market' figures are all magically "worth" all this money and all this "stock" can all be changed into "money" that can purchase goods and services. I mean buck for buck,, like all the stock could be cashed in/sold at once and be "worth" what they are quoted at that day, ALL of it.. Past bubble I can't tell ya how many people I talked to who put x cash in, their magic beans dot bomb stock went to x3, then they "lost money", like every single one of them somehow could have gotten this high point "money". Just amazing, pure fairy tale, but so many so called adults still believe this.
It don't matter, people who can understand the difference between "wealth" and "money" will continue to do well, people who won't will one day wake up "bankrupt" and wonder why it happened when they were "rolling in dough" before, and "all set" with their "secure job".
People really have only two choices when it comes to learning from history, they "do" or they "don't".