23 replies to this topic

[eminimee]

That happened to me .....I checked my home voice mail and the bank had called to tell me there was VERY unusual activity on my Visa with big cash advances in Las Vegas. What was amazing is that I was in Vegas at the time. . . . . they still haven't caught him.

[bullshort]

That's the sad fact. They spread their losses across ALL of us.

How's that? If you mean the outrageous finance charges, there's no excuse for not avoiding those - simply pay the balance off every month. Other than that, how do they spread their losses amongst all of us? The merchant fees, which I guess you could argue are passed on to the consumer, haven't changed since credit cards were introduced even though the number of fraudulent charges seems to be increasing. If anything, it seems to me that there are more incentives than ever, such as cash back, miles, etc. offered by the CC companies. How do they spread their losses, other than to those who pay the outrageous finance charges?

[ed rader]

That's the sad fact. They spread their losses across ALL of us.

How's that? If you mean the outrageous finance charges, there's no excuse for not avoiding those - simply pay the balance off every month. Other than that, how do they spread their losses amongst all of us? The merchant fees, which I guess you could argue are passed on to the consumer, haven't changed since credit cards were introduced even though the number of fraudulent charges seems to be increasing. If anything, it seems to me that there are more incentives than ever, such as cash back, miles, etc. offered by the CC companies. How do they spread their losses, other than to those who pay the outrageous finance charges?

i pay my card off every month plus get air miles...i have more than 200k air miles accrued and every time i try to use them i can't .... that's how they get you !

ed rader

Edited by ed rader, 25 September 2007 - 06:48 PM.

[Sentient Being]

That's the sad fact. They spread their losses across ALL of us.

How's that? If you mean the outrageous finance charges, there's no excuse for not avoiding those - simply pay the balance off every month. Other than that, how do they spread their losses amongst all of us? The merchant fees, which I guess you could argue are passed on to the consumer, haven't changed since credit cards were introduced even though the number of fraudulent charges seems to be increasing. If anything, it seems to me that there are more incentives than ever, such as cash back, miles, etc. offered by the CC companies. How do they spread their losses, other than to those who pay the outrageous finance charges?

It's built into the price of everything you buy at the store. Anyplace that uses credit cards. The credit card company gets a piece of the action. So the stores have to jack up the prices a fraction to cover the credit card companies portion. The companies are going to bury those costs in fees to card users and STORES.

What's really intersting is that you pay for the use of cards, even when you DON"T use them. Lets say you pay cash or use a debit card which is the same as cash right out of your bank. The store still has their charges bumped up on all items to cover the charges of the credit card companies. So you don't use the card, but you are paying more for that Orange Juice to cover that fee the store pays for all who do use credit cards. At least that's my understanding, the card company gets a Percentage of the sale. Why? Do you want to do business and offer no credit? You pay the man to get all those mastercard and visa card users to shop in your store.

I mean ultimately it all comes from us. The cost of goods and services is higher to cover the theft.

Edited by Sentient Being, 25 September 2007 - 07:51 PM.

[watson]

... If anything, it seems to me that there are more incentives than ever, such as cash back, miles, etc. offered by the CC companies. How do they spread their losses, other than to those who pay the outrageous finance charges?

Aren't those incentives paid for by the merchant who accepts the card? I think the fee the merchant pays is higher for incentive cards than for regular cards.

[Rogerdodger]

This is reason to NOT HAVE A BUSINESS CREDIT CARD. Your business (you) could be held liable for the full amount! (Read the mice type) Personal accounts are subject to different laws with much more protection. After $30K was spent in my name, I was glad it was a personal account.

Edited by Rogerdodger, 25 September 2007 - 09:20 PM.

[vitaminm]

One may often watch his/her credit account transactions on line before monthly statement is received.

Edited by vitaminm, 25 September 2007 - 10:16 PM.

[pdx5]

i pay my card off every month plus get air miles...i have more than 200k air miles accrued and every time i try to use them i can't .... that's how they get you !

ed rader

I use General Motors card and it credits your account a
whopping 5% for every purchase, no exceptions! You can
accumulate credits upto $500 per year, maximum 7 years.

Using this card I have saved $3500 on each of my two car
purchases. Now I am again accumulating credits towards
hopefully a Cadillac.

You can shop at any GM dealer, make your best deal and then
pull out your credit card statement which shows accumulated
credit amount. It works!

Edited by pdx5, 25 September 2007 - 11:03 PM.

[ed rader]

i pay my card off every month plus get air miles...i have more than 200k air miles accrued and every time i try to use them i can't .... that's how they get you !

ed rader

I use General Motors card and it credits your account a
whopping 5% for every purchase, no exceptions! You can
accumulate credits upto $500 per year, maximum 7 years.

Using this card I have saved $3500 on each of my two car
purchases. Now I am again accumulating credits towards
hopefully a Cadillac.

You can shop at any GM dealer, make your best deal and then
pull out your credit card statement which shows accumulated
credit amount. It works!

that sounds like a great deal...no wonder that company is in trouble ... and of course blaming the union !

ed rader

[Tor]

That's the sad fact. They spread their losses across ALL of us.

How's that? If you mean the outrageous finance charges, there's no excuse for not avoiding those - simply pay the balance off every month. Other than that, how do they spread their losses amongst all of us? The merchant fees, which I guess you could argue are passed on to the consumer, haven't changed since credit cards were introduced even though the number of fraudulent charges seems to be increasing. If anything, it seems to me that there are more incentives than ever, such as cash back, miles, etc. offered by the CC companies. How do they spread their losses, other than to those who pay the outrageous finance charges?

i pay my card off every month plus get air miles...i have more than 200k air miles accrued and every time i try to use them i can't .... that's how they get you !

ed rader

why cant u use them?