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).
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!
by Anonymous Coward writes:
on Sunday February 09, 2003 @10:04PM (#5267924)
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.
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: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).
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:1, Informative)