General Discussion

erronis

(24,282 posts)

34. I'm glad you brought that up. The bankers are using the CC fees (2-3%) to fund their cashflow.

Wed Mar 8, 2023, 05:21 PM

Mar 2023

While ripping off the lower-income people with exorbitant interest fees and penalties, most of their steady cash flow comes from the processing fees.

Higher-income people spend a lot more on credit cards and thus bring in more bucks on these fees.

I carry a wad of cash always for most day-to-day purchases. Plus I don't get tracked - unless by the microchips in the $20 bills....

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Dirty little secret of credit card rewards [View all] Coventina Mar 2023 OP

If you don't want to incur high interest rates and fees calguy Mar 2023 #1

Never buy on a credit card True Blue American Mar 2023 #3

"Never" is a strong word Happy Hoosier Mar 2023 #13

My dad told me to never borrow money without a way to pay it back. WheelWalker Mar 2023 #20

That's nice if you can pay your rent wryter2000 Mar 2023 #37

A mortgage is super smart financially. It's using moonscape Mar 2023 #45

Sometimes people don't have a real choice. friend of a friend Mar 2023 #4

Between my FSA and CareCredit, that's how I get our family meds Kennah Mar 2023 #5

And it doesn't cost anything? friend of a friend Mar 2023 #6

It's different Kennah Mar 2023 #7

FSA is taken out pre-tax, care credit is a tax-deductible medical services loan. haele Mar 2023 #9

It generally has to be part of your work benefits package. Ms. Toad Mar 2023 #18

Many people have no other way... hippywife Mar 2023 #11

I'll accept you calling me insensitive calguy Mar 2023 #17

I would not say True Blue American Mar 2023 #27

So why then... hippywife Mar 2023 #29

Sorry, I'm not punching down on poor people calguy Mar 2023 #48

Credit cards were essential for me as a young adult. Coventina Mar 2023 #49

Congratulations! calguy Mar 2023 #50

You used credit wisely. True Blue American Mar 2023 #64

It's impossible Zeitghost Mar 2023 #56

I agree. I save for every purchase I get including a roof, painted house, painted driveway jimfields33 Mar 2023 #12

Lesson well learned! True Blue American Mar 2023 #28

Thank you! jimfields33 Mar 2023 #52

Some people use credit cards they can't afford Elessar Zappa Mar 2023 #26

60% of Americans live paycheck to paycheck. When an unexpected expense Gaugamela Mar 2023 #32

All of this! ShazzieB Mar 2023 #41

Really? If they have a sick child or there car breaks down Or they are laid off? Oppaloopa Mar 2023 #39

I've paid my cc bills in full for decades. There was a time as a young mom that was not possible. Joinfortmill Mar 2023 #62

All I can say is that someone ends up paying the price, of any of these called rewards. And they're SWBTATTReg Mar 2023 #2

Am not affluent (exist on $11,000/yr), and pay my balances off every month. But I only eat allegorical oracle Mar 2023 #16

Youu deserve praise for that! True Blue American Mar 2023 #30

There is no subsidizing going on Zeitghost Mar 2023 #60

What fees? I know that the ones I've read about, you have to specifically join, and then you SWBTATTReg Mar 2023 #66

Credit card companies Zeitghost Mar 2023 #67

They'll just gouge the poor more zipplewrath Mar 2023 #8

I'm glad you brought that up. The bankers are using the CC fees (2-3%) to fund their cashflow. erronis Mar 2023 #34

I always feel like those ads are misleading. Initech Mar 2023 #10

Back in the day, the rewards could be pretty good. Happy Hoosier Mar 2023 #15

If you travel at all, they are worth it. Ms. Toad Mar 2023 #19

Cards w/perks like miles and Disney points Mosby Mar 2023 #14

This! I pay a higher transaction percentage for reward cards mtngirl47 Mar 2023 #31

Discover is the worst in my experience. Mosby Mar 2023 #55

Can't gouge me: I pay my bills down to zero (and some to -1 cent to keep them from closing acc). Justice matters. Mar 2023 #21

I know one thing: the bank executives never have to give up their annual bonuses FakeNoose Mar 2023 #22

Once upon a time I made the mistake of bringing my credit card with me to the Emergency Room. hunter Mar 2023 #23

BS! I pay off my cards every month and I get cash back, HeartachesNhangovers Mar 2023 #24

And there it is! Grins Mar 2023 #35

Millions of people do that Zeitghost Mar 2023 #58

I put everything on credit cards wryter2000 Mar 2023 #38

They're going to gouge the poor however they can. Earth-shine Mar 2023 #25

I use them for the perks Calico79 Mar 2023 #33

I doubt the poor will pay a $550 annual fee. oldsoftie Mar 2023 #36

Predatory lenders are the problem, not the people who use rewards IronLionZion Mar 2023 #40

I use my rewards cards for different things: yellowdogintexas Mar 2023 #42

Subsidize? RoadRunner Mar 2023 #43

The people who sold you gas and lunch Mosby Mar 2023 #53

Very true Zeitghost Mar 2023 #59

I think some have missed a key point here. WestMichRad Mar 2023 #44

Credit card companies have always taken a cut of each sale Silent3 Mar 2023 #46

They've charged merchant fees for decades. oldsoftie Mar 2023 #51

Maybe so, but I wasn't aware until recently of... WestMichRad Mar 2023 #63

I've seen more "cash price" ads lately too; especially gas stations oldsoftie Mar 2023 #65

The middleman always gets his cut. mn9driver Mar 2023 #47

I charge EVERYTHING. Hotel rooms & plane tickets. oldsoftie Mar 2023 #54

The article is conflating two largely unrelated parts of the credit card industry Zeitghost Mar 2023 #57

I hear you. Joinfortmill Mar 2023 #61