Regarding credit card companies and the interest and fees they charge consumers.....

[Ninga]

I am going to try to go a month without using any charge cards.

Here is why.

Every business that accepts charge cards as a form of payment PAYS FOR THE SERVICE, AND GETS CHARGED FOR EACH AND EVERY TRANSACTION PAID FOR BY A CREDIT CARD.

The greedy greedy greedy credit card companies have both hands out....they charge the consumer large fees and interest, and businesses that take charge cards, have to pay fees for each transaction.

One fee to the credit card company
One fee to the banking service that handles the transactions.

Anyone game?

[DJ13]

1. Im game

But I got rid of all my credit cards years ago, so I have nothing to lose by saying that.

:hi:

[BOSSHOG]

2. A question about such transactions

A local retailer told me that they would prefer customers use "debit" instead of "credit" because it costs the retailer less. Is that true? And if so would that not behoove us to get a PIN with a credit card? I seldom use a credit card but everytime I use my checking account debit card I use debit.

[RB TexLa]

7. Depends on if you like the retailer or your bank better. Your bank pays the transaction costs

on PIN based debit transactions. I, well, my wife owns stock in the bank and I like my bank more than most retailers. The bank give me money, the retailers don't.

Some have gotten pretty pushy in asking you to use "debit" instead of "credit." All the machines prompt you for it if you swipe a debit card and you have to cancel to use it as credit. A couple of places the clerk will say, "oh just enter your PIN." To which I have started telling them, "I don't have a PIN, never needed one."

[BOSSHOG]

12. I haven't had anyone pushing the (D) on me

but I have figured out the cancel default button to override the debit transaction.

I do appreciate the dilemma. I actually like my bank and I do like most of the retailers I do business with, but thanks very much for the information. I never thought of it that way.

[Warpy]

3. WAY ahead of you there

I had a credit card for about four years, chopped it up and sent it in back in 1991 when junk fees started to appear. Silly me, I thought 18 3/4% interest should be enough for any of them on balances carried over.

I'll use an ATM card, but only on businesses that pay for the "instant deposit" check system already, the one where the check is entered and approved the way a credit card is.

Other than that, I'm old fashioned and pay with a check or cash.

You can live quite nicely without plastic, although the ATM card comes in handy for online purchases. I have one only on a junk account to limit my loss if someone hacks it.

Now if we could only negotiate a discount for paying cash, we'd be in business.

[BootinUp]

4. Of course the savvy consumer

can earn rewards pts by using cards and not get charged any interest as long as its paid in full each month. Credit card companies really don't like me.

[Sherman A1]

13. Same here

I like using their money for free, getting reward points to purchase gift cards that cover part of my holiday shopping expenses and the convenience of paying for my monthly purchases at one time.

One just needs to game the system that is being used to game us and bingo... We win.

Even if we all used cash at the store, the prices will not come down because the credit card fees are built into the retailer's pricing structure. You are paying for it in the price charged for the product no matter if you use cash or card.

[MindPilot]

5. For local merchants--people I know--I will use a debit card.

Chain retailers & big box stores; I use a credit card. I'm told that Amex dings small retailers for such high fees that it can actually wipe out the margin on some items.

[MindPilot]

6. I also leave a cash tip whenever possible--even if I pay with a card

That way the server can pocket unreported cash if they want.

[ProfessorGAC]

8. Fees Are Peanuts

I'm not changing anything. My wife and i use cards as CHARGE cards. A temporary float of the cash, that we actually have, to cover the cost until the bill comes in. (Example: My wife sends me to pick up carry-out at this really good chinese restaurant. They don't accept checks, so we charge it and pay the bill when it shows up.)

The transaction fees are peanuts to the big banks. To small banks, like the one i serve as a board of director member, it's important. But, to the behemoths, fees are about 3% of credit card revenue. The rest is interest.

You can have 97% of the impact you're trying to have by simply using the card sparingly and paying it in full when the statement arrives.

That will sting them pretty much the same as what you're proposing.
The Professor

[OPERATIONMINDCRIME]

11. Bbbbbbut That Would Be Too Rational!!!!!

We just can't have none of that round these parts!

[ProfessorGAC]

14. Perhaps So

But, it is the truth! The banks and CC companies want the interest payments. My little bank does like the fees, but that's because our outstanding balances are small enough (several million, not billion), that fees mean more. But, still >90% of the revenue comes from interest payments.

Using the card, and not running balances would have the same effect as not using them at all.

See ya.
GAC

[RebelOne]

9. I haven't had a credit card for over 2 years now.

Credit cards got me into trouble and I had to file a Chapter 13 bankruptcy. I am not allowed to have any credit cards for the next 4 years. That's a good thing because I have to pay cash for everything and don't have any more credit card bills. I am having to pay through the court a bi-monthly payment until I'm out of debt, but it is still less than I was paying credit card companies every month.

[OPERATIONMINDCRIME]

10. Why Shouldn't They? They're Providing A Service To Each.

Seems like common sense that there would be fees involved on both ends.