“Credit cards incentivize consumers to spend more” Such a true statement.

@STG44musikmeister

Жыл бұрын

Yet everyone will claim they're the exception to that.

@fs5775

Жыл бұрын

Depends on the person. If you are disciplined, you end up making money of these credit card companies through their rewards programs.

@fs5775

Жыл бұрын

@@STG44musikmeister This commenter certainly is not..

@GabrielMartinez-sd8pc

Жыл бұрын

@@fs5775 Statistically, using a card whether debit or credit increases your likelihood to spend more. I am a staunch anti-credit card person and I tried it to see how I would respond. While I did manage to stick to budget, there were times I spent more than I normally would had I paid cash. I then went to all cash and I did save around $200 per paycheck just from using cash. You tell me what credit card gives me around $400/month in cash to save into whatever I want returning me more gains through the market.

@STG44musikmeister

Жыл бұрын

@@GabrielMartinez-sd8pc Yes it can be subtle as grabbing a soda at check out or deciding not to because you don't want to break your $10 among other things.

I don’t think businesses are going to lower the product prices even if the transaction cost is lower. It just goes to their margin instead

@ylfyg

Жыл бұрын

If about if you use cash , it easier to laundry , and manipulate the account, for both loan and tax purposes .

@fitybux4664

Жыл бұрын

@@ylfyg It's also easy for an employee to play tricks, like ring up a lower cost order, and pocket the difference of cash.

@ylfyg

Жыл бұрын

@@fitybux4664 this is what the POS system and CCTV is for

@MMalke

Жыл бұрын

Here in Brazil were basically switching everything to something akin to e-transfers, called PIX. It's operated by the Central Bank of Brazil, and does not charge any fees.

@jickjackyou

Жыл бұрын

umm right so you'd rather everyone just be poorer? I hate to break it to you, but most of us are barely getting by too. Most small businesses don't survive 3 - 6 months and without that margin you wouldn't even have a place to shop in many cases.

This is an interesting story on the cost of electronic payments. I'm very interested to see a direct comparison of the true cost of cash. Cash theft was mentioned, but there's also miscounting, storage costs, physical moving costs, and maybe other costs. Does storing cash increase insurance premiums? Does handling money increase employee sick time? Seems a little like an illusion that cash is cheap because the cost of cash is diffuse, opaque, and unpredictable at times.

@Aliquis.frigus

Жыл бұрын

A study done in Norway during the corona virus said there wasn't any increase in risk of infection from using cash.

@remsee1608

Жыл бұрын

Personally the cost of a $3 atm fee for a $100 withdraw is more than 2% through credit card

@VEVOJavier

Жыл бұрын

@@remsee1608 crazy how you people need to pay money to withdraw your own monry...

@homewall744

Жыл бұрын

Cash is easier to hide from the tax collectors. That's the primary motivation. We see this when government adds a fee, so I mail them a check, which they now must process as incoming mail, open it, process the check payment by hand, then deposit that check in their bank, and then banks have to exchange the money and return the check to the buyer's bank. That's all cheaper apparently in the fake world. But fees that aren't flat, but based on the amount, are a fraud as the cost does not change by the value of the transaction.

@tolazytothinkofanamd2351

Жыл бұрын

@@VEVOJavier You're using an ATM's network. You're paying for convenience. You could just go to the bank and withdraw for free. Also ATMs cost money that need to be recouped.

EU and UK capped card fees around 0.3%, which helps increase acceptance of digital payment, but a lot of card companies don't offer rewards.

@tradeprosper5002

Жыл бұрын

USA swipe fees are way overpriced. Credit cards companies are as consistently profitable as big pharma.

@user-ei7ed6zy9k

Жыл бұрын

bossman gonna say "minimum 3 pow"

@ryanberry1

Жыл бұрын

0.3% credit cards, 0.2% debit card IRRC?

@ComeBackKid1

Жыл бұрын

Yea but Europeans are smarter and more United.

@mrbane2000

Жыл бұрын

What if banks blocks your money one day

The only way I would switch back to mostly cash payment is if ALL the stores started charging different rates for cash vs card. It’s not worth the inconvenience to save 50 cents at a couple of mom and pop shops

@pkwithmeplease

Жыл бұрын

We just don't shop at mom and pop shops anymore. They wanna run that 3% fee we won't buy there. Now we will go cash

@dorasmuris

Жыл бұрын

@@pkwithmeplease Either way you are paying the 3%. When you purchase with credit card most prices have already up charged you by 3%. The only difference s that you might recoup some of that 3% with credit card rewards.

@middleagebrotips3454

Жыл бұрын

That's why they only recently allowed merchants to charge differently (by legislature after everyone's hooked on cards), for decades merchant agreement forbid that practice.

@middleagebrotips3454

Жыл бұрын

@@pkwithmeplease So you rather pay the fee built-in, that's all it means, this idea is as silly as free shipping.

@Dudanation12

Жыл бұрын

@@middleagebrotips3454 It's great if the store offers a percent off for cash. It would only matter for large transactions of course, based on what he's saying. And your rewards get it back mostly anyway. Most of the time, I get more than 3% anyway so I'm the one who's REALLY making transactions expensive for businesses.

One reason Businesses prefer cash is to avoid tax. It's a big motivation. I used to work at a grocery shop, the owner told me that.

@DrTait-gh3tu

Жыл бұрын

You mean a gas station

@damnjustassignmeone

Жыл бұрын

Very true

@VintageToiletsRock

Жыл бұрын

Sounds ethical to me.

@jaredspencer3304

Жыл бұрын

That's why I pay local businesses and professionals in cash, but pay multinationals with credit cards.

@Your_Wife.s_Boyfriend

Жыл бұрын

@@DrTait-gh3tu Nah, local grocery store in Sydney.

I’m curious how much it costs businesses to accept cash vs cards when bank fees, cash pickup services, and time wasted making change and counting drawers is accounted for

@Photographerindian

Жыл бұрын

2%

@andrewlenz

Жыл бұрын

As a retailer, I can tell you, even taking all the labor of counting in and out drawers, making transactional change for customers, bookkeeping, making bank runs, etc., it’s at least 3 times more expensive to take credit cards over cash. If we could realistically stop taking credit cards, we’d do it immediately! As it is, the banks have retailers over a barrel as they race to give more and more rewards to card users. Retailers really have no choice but to pay the ever higher fees.

@wizaaeed

Жыл бұрын

@@andrewlenz and how is that, cash managment is such a waste of time that you can use it for something else and accept the fees, think about it, how do you order food how do you pay for plane tickets, if cash comes back there will be 1km queues for every basic thing

@dorasmuris

Жыл бұрын

@@wizaaeed The whole point is to lower the fees to make it cheaper to accept credit card fees rather than count cash. Right now it is cheaper to only accept cash and spend time handling it, rather than accept the fees.

@andrewlenz

Жыл бұрын

@@wizaaeed I’m an executive with a seven-figure business with a staff of 24 people occupying a 10,000 sq.ft. building, plus another warehouse. Trust me, accepting credit cards is very costly. An cash transaction is typically just as fast as a credit card transaction. And a bookkeeper still needs to reconcile CC processor statements. 2%-3% is a LOT of money. Not that we can, but if we stopped taking CCs, I could easily hire another full-time person with the savings. There’s no way handling cash vs. credit card requires a dedicated 8-hour/day person. You asked a question, as an expert on this topic, I answered it.

Offer me a discount if I pay cash. Why would I use cash when I get 2% cash back using a card when the price is the same?

@stgermain6488

Жыл бұрын

I’ve been to some places where they tell me the different prices if I paid cash.

@potato2941

Жыл бұрын

@@stgermain6488 However you and I know that is not the norm. If all merchant started to charge 3% or at least give me a 3% discount. I would immediately stop using my card.

Explains why I see a lot of "No AmEx Here" signs

@veganpotterthevegan

Жыл бұрын

Easy, Amex charges the most to the store.

@Pheebe.Dee.

Жыл бұрын

Most merchants do not accept Discover cards either.

@unlimitedpower4101

26 күн бұрын

​@@Pheebe.Dee. wrong, they're accepted in 98% of US stores that accept cards.

Airlines, hotels, and other travel companies are also heavily invested in credit card point schemes. These rewards are often used to make travel purchases the consumer otherwise wouldn't have made driving back more revenue to the travel companies.

The main reason so many small businesses, such as restaurants, prefer cash isn't the credit card fees, it is so they can avoid something that's a three letter word starting with "t" and ends with "x".

@ryanpeters3289

Жыл бұрын

Exactly

@ApriliaRacer14

Жыл бұрын

Bingo!

@AuthenticTraveling

Жыл бұрын

All these fees reduce the taxable income so if a business is unprofitable due to the fees, the tax rate doesn't actually matter. Tax relief wouldn't solve that problem.

@xiphoid2011

Жыл бұрын

@@AuthenticTraveling actually tax is the much bigger portion. For example, sales tax is 8.25% in Texas. Paying cash?that 8.25% pure profit for the business. Also, as they can pretend they didn't sell anything, there is no revenue, only expenses. All the sudden they just went from making a profit to a loss on paper. Now they don't have to pay business tax, either. All these are much harder to hide if the bank/creditcard company has transaction records. Now you understand why they love cash transactions.

@jackli6592

Жыл бұрын

if that is ur concern then allow business to pass the 3% to customers. anyone pay with a credit card pay a 3% transaction fee.

It's crazy to think that this is getting more expensive in a world where technology is getting cheaper and financial transfers are easier than ever. There should be one single fee, like with debit cards, and it should be limited by law

@Truthshouldalwaysbetold

Жыл бұрын

What should be and what is are two different things. Banks will never be limited by law as long as they are allowed to write the laws for their greater good, not our greater good. What controls our money is a private entity, not government. What people need to understand is the power in decentralized currency and the realization of the debt they call money now. Debt can be controlled, that is what finance is, control. Money is not finance, money is energy and has to be able to flow freely in order for us to truly benefit from the technology. People think an algorithm controls the value of things when they are all controlled by human decision, an algorithm will be truthful and follow what is rather than belief.

@Dudanation12

Жыл бұрын

This is why digital currency has us moving towards the next step. If they keep the transaction fees down, we get both the convenience and the low cost WHILE keeping the power out of the banks that make the rules and print the money. Government does not like this because their friends run the banks.

@jl1695

Жыл бұрын

It’s because its a business and needs to make money and provide jobs gosh you people dont ever think 🤦‍♀️

@_HecticZ

Жыл бұрын

Exactly. The technology and ease-of-use was made possible by the fees. Someone has to pay for the multi-billion dollar networks and backend that handles these things. This video just goes to show that you should be using credit when prices are indifferent to the payment method.

@justcommenting4981

Жыл бұрын

@@Truthshouldalwaysbetold you had me until decentralized currency. Literally just have people control government or have the majority control on any corporate board. Can't algorithm your way out of this.

American fintech industry is still in the dark ages.

@cd6583

Жыл бұрын

i mean the dark ages were great for the nobles, and the fintech industry are the nobles in this analogy so this is actually quite accurate

Surcharges are illegal in Texas but many stores still do it. Also I only use my credit card on the necessities which is why I haven't seen credit cards becoming expensive.

@Ben-xe8ps

Жыл бұрын

Surcharges are now illegal in the UK also and the law is respected. Have not come across any store ignoring it.

@horacewonghy

Жыл бұрын

Not illegal in Hong Kong but if the transaction company knows that, they will terminate the service to the store. But anyway we usually have cash pay discounts in small shops.

@suzannedevreugd

Жыл бұрын

Why doont jou just juse a normal bank pass? Just pay imidently?

@chantakzee

Жыл бұрын

@@suzannedevreugd Because in case of fraud, you are screwed if you use bank card and the bank will only "help" you by bringing you for a walk in the park.

@davidebacchi9030

4 ай бұрын

Surcharges may be illigal, but discounts are not. A business may well set prices with cards in mind and offer 3% discount to all those paing cash. Instead of getting a reward on the card that you may or may not need, you get the discount immediately.

As a customer, I would not have spent as much money on a daily basis if I had to pay cash. Having a plastic card that makes it "convenient" help subconsciously with spending more. if merchants will start requesting cash only, they may save on the fees but they will lose on the total amount of sales.

@zhengyiyue9223

Жыл бұрын

dumb ppl only see whats in front of them. dont tell em

@karldavis7392

Жыл бұрын

You only have so much money total, so I guess credit card spending reduced your other kinds of spending.

@Uniacoty

Жыл бұрын

If a merchant only accepts cash, they will certainly lose lots of business. The only feasible option is adding a fee directly to card users.

@NazriB

Жыл бұрын

Lies again? Pay Services

@Tofuey

Жыл бұрын

I hate spending money tbh. The worst feeling is buying something and regretting it.

Thanks for the great video! Also I really needed to see the no more half measures scene, since it was playing out in my head anyway.

These businesses that try to discourage card use are missing out on the fact that consumers are able/willing to spend more if they are purchasing with a credit card. It hurts the business in the end if they are cash only.

@noahway13

Жыл бұрын

Very good point. And virtually nobody carries substantial cash anymore. I'd say most carry NONE.

@kaymish6178

Жыл бұрын

@@noahway13 I live in New Zealand. We got EFTPOS in the 1989 and everyone has an EFTPOS card I have never carried cash except for when I'm making illegal/grey market transactions.

@speedzero7478

Жыл бұрын

Facts. Its also dangerous to carry cash in a big city, in USA

@GameFuMaster

Жыл бұрын

well, it's also easier to avoid tax with cash only. It probably evens out in the end, given that your business is in high demand.

@beckypetersen2680

Жыл бұрын

@@noahway13 depends on the age. Under 35 - agree with you.

It feels weird to say this, but credit card is more pro-consumer. With debit or cash, I am paying more relatively (no rewards) and, if something goes wrong with the service, there’s no purchase protection, insurance or chargeback options.

@tylerpeterson4726

Жыл бұрын

All debit cards offer chargebacks, it's required by law. It's just the bank doesn't refund your money until after completing their investigation while credit cards offer a temporary credit during the investigation and then either finalize or remove the credit at the end of the investigation. There's nothing preventing banks from offering preliminary refunds during debit card chargeback investigations, they just want to push people to using more profitable credit cards. The insurance some credit cards offer is just another service being paid for with the higher swipe fees that get passed onto everyone regardless of payment type. There's nothing magic about credit cards that creates insurance and purchase protection in a way debit cards couldn't, except, again, debit cards don't generate as much revenue.

@ryanpeters3289

Жыл бұрын

Exactly

@noseboop4354

Жыл бұрын

Credit cards are also anti-consumer. Due to their duopoly, VISA and Mastercard keep raising their fees and guess what? The stores pass on that cost to you by raising their prices. North America has some of the highest processing fees in the world because other countries have passed laws to regulate these fees.

@hudbenz1

Жыл бұрын

@@noseboop4354 then get amex

@shahx1019

Жыл бұрын

@@noseboop4354 Get a Citi double cash then, you won't lose anything.

Thank you for tapping your card! Annoys me when people still use stock footage of swiping. Nobody swipes anymore :/

subjectively, if I know a business doesn't accept credit cards, I won't go there. I hate carrying cash with me. Having been robbed before, the biggest inconvenience was replacing my drivers license since all my cards got canceled an hour after I got robbed. I also make $20-30/month off rewards which I like

@enticingmay435

Жыл бұрын

Exactly, if you know how to control yourself and use credit cards correctly it’ll actually be a benefit for you. Plus, cash is also really unhygienic. I used to work retail while in college and you’d be surprised where a lot of people pull their cash out from. It’s absolutely disgusting. I rarely even touch cash anymore and I always make sure to wash my hands right away when I do.

@jerradwilson

Жыл бұрын

@@enticingmay435 My first job at the McDonald's drive thru, some lady with lips glossed over with lipstick decided to put a cash bill in her mouth while she dug in her coin purse. Gross.

@MrWarrenRB

Жыл бұрын

Robbers don’t know if you don’t have cash on you. It won’t stop you from being robbed again.

@yukie_tn

Жыл бұрын

@@MrWarrenRB ...... By not having cash on you, the robbers are not able to take anything even if they rob you.

@paxundpeace9970

Жыл бұрын

Credit card fees and interest are much higher on the long run as soon you get behind in the payments

WSJ, these fees have been utilized as far back as my Business in the 90's! Cash was always encouraged!

@Robertgriffinne

Жыл бұрын

The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse is near.

@PhilipMurray251

Жыл бұрын

@@Robertgriffinne Collapse is generous 1st time in our history with a full generation that wasn't taught financial literacy, civics, Google fixes their problems if their parents don't do it for them. Reckoning for participation trophies is incoming

@marianparker7502

Жыл бұрын

Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire. Personally I hired ‘’"Nicole Ann Sabin"’’ a financial advisor who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals.

@wiebeplatt4749

Жыл бұрын

@@marianparker7502 Please, your coach you mentioned, how do i get in touch with her?

@marianparker7502

Жыл бұрын

@@wiebeplatt4749 just look her name up online to get in touch with her, her details are provided online

CC fees are brutal and getting worse over the years. Online the standard is 2.9% + cross border adds another 1%. Also most payment processors don’t refund your fees if you refund the payment.

The convenience of using a credit card to me is my main priority. I don’t like having cash in my wallet. And also i wan’t to keep track of my spending so i prefer credit card

@Crovea

Жыл бұрын

In Europe everybody uses debit cards. We don't have this problem because credit cards companies are not legally allowed to gauge out the retailers with massive fees

@YaYousef5

Жыл бұрын

Use a debit card.

@dogguy8603

Жыл бұрын

You can keep track of spending and save more money by using cash

@mc6372

Жыл бұрын

@@YaYousef5 debit card = no rewards. Credit cards guarantee at least 1.5% discount if you have cash back, another main selling point to credit cards.

@RaduRadonys

Жыл бұрын

@@mc6372 Not in Europe, most of credit cards work just like debit cards, no rewards.

When it comes to cash...there are still costs...like labor...security...theft...and counterfeit

If I don't get a surcharge for using credit, then I use it - No annual fee, rewards whether cash back or points for other perks, paid in full before the end of every month/pay period. No issues. Other than that, I pay cash.

The irony is that even if the regulators imposed a cap on the credit card fee(s) that the merchants are paying for each transaction, the prices that the consumers are paying for goods and services didn’t drop as proven in the UK, the EU, and Australia. These countries have capped their credit card fees for years and the consumers have not seen a drop in prices while their credit card rewards program benefits have been cut substantially. In the end, the merchants are keeping the extra savings for themselves instead of passing the savings on to the consumers.

@wadexyz

Жыл бұрын

How did they know the prices were not rising because of other factors (i.e. - inflation) ?

@vmmell0

Жыл бұрын

In Brazil we have an instant payment network since Nov 2020 that connects all banks and small payment institutions and cost all them 1 cent for every 1000 transactions (and through many banks it's free for customers and merchants). But prices haven't lowered because of that. Though in aggregate merchants are certainly saving billions in fees and many jobs have been created in the payment industry. And banks are saving a lot in cash handling. Though life is equally difficult as it used to be.

@StreakyBaconMan

Жыл бұрын

I mean no it's not an overnight lowering of all prices, it's a gradual process that takes time. One business may decide "I'm not going to put my prices up along with my competition despite my costs raising so I can hopefully steal some of my competitions customers" and be able to do so because of the lower fees they are paying on transactions than they used to, and then quickly the other businesses have to start following suit or lose their business to the people who are undercutting their prices and taking advantage of those lower fees. Or maybe they don't cut the prices of goods at all from what it would have and instead offer their employees a raise they couldn't have afforded to offer otherwise, and attract the best quality employees that can provide the best customer service and try and attract more customers that way. If you ask me credit card rewards programs shouldn't even exist. It's basically you being sold a product or service you otherwise never would have paid for by hiding the cost of it in the sticker price you pay for your shopping to make it appear free. Even worse, you're paying for someone elses credit card incentive program if you decide that you don't want to get a credit card yourself. Taking out credit shouldn't be something that is rewarded or incentivised, it should be avoided where possible. I understand I need a loan if I am going to buy a house - I do not need a monthly loan of the same amount as my pay which is what credit cards get you to do.

@absolutelypitiful3837

Жыл бұрын

@@StreakyBaconMan that never happens in practice. It's been proven that businesses all over the world never lower their prices when there is an interchange fee cap. They just pocket all the money to themselves because they get greedy.

@StreakyBaconMan

Жыл бұрын

@@absolutelypitiful3837 In a free market that just isn't possible. SOMEONE is going to take advantage of lower costs to offer lower prices eventually, and their competition is forced to lower their prices in response. Or if not lower the prices, at least increase the prices more slowly. It makes absolutely no sense to think that every single last person in the retail industry would decide to not take advantage of lower costs to cut prices and drive up business. It's just the fact the results aren't instantaneous that makes people think that they don't see any savings personally. And you can't just say "it's been proven" and leave it at that. If it's been proven, show me and I'll change my mind. It hasn't been proven at all. You've just assumed it.

I've seen businesses that accept debit cards as same-as-cash, while imposing an additional fee on credit cards. That sounds about right, and gets them out of the problem of handling cash. Credit cards run a challenge/appeal system that debit cards don't, but for a lot of things (frozen chicken at Walmart) you aren't ever going to use that system.

@evilbred974

Жыл бұрын

This is contrary to the agreements those merchants have with Visa or Mastercard. I've always reported CC usage fees to my credit card issuer and they will likely refund the fee charged by the merchant and fine the merchant under the agreement or potentially terminate the agreement with the merchant.

@karldavis7392

Жыл бұрын

@@evilbred974 I assume you mean their agreement requires them to charge just as much for a debit card as a credit card, right? Because all the large institutions I work with charge a "convenience fee" that I don't have to pay if I use direct ACH. For example, Southwest Gas and APS do it, and the government does it with the property taxes on my house.

@evilbred974

Жыл бұрын

@@karldavis7392 That's because the sad truth is large institutions negotiate custom deals with credit card companies.

@karldavis7392

Жыл бұрын

@@evilbred974 Under what conditions have you reported businesses? Like how did it work, or what were they doing?

@NekoBoyOfficial

Жыл бұрын

Winco doesn't accept credit cards, now I understand why.

In Brazil they implemented a system called PIX to have an instantaneous and free of charge transfer system between accounts, and that was supposed to only impact bank transfers. But it's so easy to use and avoid all these fees, that every shop and everyone adopted it so quickly. So much so, that they are creating the PIX credit to also create a free of charge credit system directly from your bank account. I think other countries has a success story using similar systems as well. If other countries can do that, why not the US? It just need will from the government.

It is possible. In the Netherlands using your bank card costs a flat fee of about €0.07 - €0.20. There are no rewards programs though, but since you're indirectly paying for these anyway, I'd say that's a good thing.

We at ATM/Merchant World in Astoria do cash discount 4% with small businesses here in NYC and it’s been successful in NYC. Saves merchants the processing fees and passes it to the customers.

I used to only pay with cash in hopes of keeping expenses down. But now that nearly everyone uses cards, I use mine a lot more often. I still carry enough cash that I always have that as an option to save money.

Small merchants paid 3% per transaction 20 years ago, and they pay 3% per transaction today even for debit card, which is capped at $.21. It's not Visa and Mastercard, or the banks. It's the company that sells the credit card terminal who is making all the money. Cap credit card interchange rates, and merchants will continue to pay 3% unless the merchant terminal companies make changes. BTW, the large companies are the only ones that benefit because they can negotiate for lower rates.

@TimBryan

Жыл бұрын

My prediction is that over time the fees will drop lower and lower as more competitors come around as CC usage increases.

@YaYousef5

Жыл бұрын

They capped interchange fees in Europe at 0.3% and found that the majority of merchants reduced their prices. We already know it works.

@shipper62

Жыл бұрын

@@YaYousef5 we capped prices for debit in the US and prices were unchanged. I seriously doubt that capping interchange will result in a price reduction, but in higher profits for merchants. Which is fine but lower prices are extremely unlikely

If credit card fees were based on a set ratio that people understood, and especially if the total fee were to always fall below 1% the vast majority of users would not bother protesting the expense. Unfortunately, most financing fees are becoming confiscatory in nature and it isn't unusual for fees to become well over 5% of a total cost of a transaction.

In Peru that is already happening, businesses charging consumer for payment with credit cards

Finally we are looking at this!

Im afraid that like anything covid related issues, even after the proposed fee reduction, the “added” cost from the business to consumers to offset the cost of the fees is already the norm and we will not see any reduction in price of the goods.

2:47 exactly. So i am to use cash which i dont mind id want that to be reflected in the items im purchasing. Cant charge a credit card customer and cash customer the same and then put up a sign that cash is preferred. There should be incentive to using cash.

@kevinkent6351

Жыл бұрын

@@djick31 That is completely backwards. Advanced Asian economies have been essentially cashless for a decade or more and the United States is just stuck on old payment processing technology and paper money. I even still see some people writing checks in the grocery store likes it's 1972.

@xodima

Жыл бұрын

@@djick31 I like this idea because I can include it in my rewards calculation. IE: if my card gives me 2% back and cash gives me a 3% discount, I can use that as a reward.

There are a couple of things that could have improved this video. #1 We can see what happens when interchange fees are capped by looking at Europe. #2 Pre Durbin consumers were promised lower prices, this didn’t happen for a number of reasons. #3 I don’t understand why Cash is portrayed as cost free. There is a lot of research showing the actual cost is higher than US CC interchange. That means we won’t see lower prices. #4 Enabling alternate networks can cause issues if the network is providing some of the card benefits. For example if I swipe a Visa card at a store and it gets routed through an alternate network by the retailer do I still get extended warranty coverage? This can be pretty anti consumer

@angrybird29

Жыл бұрын

hmm, that is an interesting point. But are you okay with the above video presented added costs fluctuations controlled by a monopoly of network operators. Bringing in competition also looks like a sound idea

@jarrod499

Жыл бұрын

@@angrybird29 there are CC networks beyond visa/ Mastercard. American Express and Discover cards are widely accepted. The alternative presented in the video is extending Durbin aka price controls. Look I understand why retailers would like the government to cap costs they are paying I’m just not very sympathetic.

@beckypetersen2680

Жыл бұрын

@Moe Ermotz The privacy is the best pro of cash, but the c/c provides great records.

@BabyBugBug

Жыл бұрын

@Moe Ermotz Cash is hard to track and cumbersome. I haven’t withdrawn cash in years. Budgeting is also far easier with a card.

@BabyBugBug

Жыл бұрын

@Moe Ermotz I’m speaking from my own experience. I follow all of my transactions like a hawk. It is FAR easier to do that with a card where everything is laid out in a monthly list I can itemize and scrutinize. I am an accountant, so this is why I prefer this.

You should look into the UPI system in India. It's beating VISA and Mastercard mostly because it's more customer and seller friendly.

@tkj2192

Жыл бұрын

True UPI is a revolution in digital payments.

@estycki

Жыл бұрын

That sounds awesome.

@vishnusasi7098

Жыл бұрын

East or West Upi is the best

@Sophisticated-Man

Жыл бұрын

Us government will not like it because it is free. Visa others will be destroyed . As it is happening in our country. It will seen as alternative to Swift system that US Gov will not like it.

@lonewarrior8245

Жыл бұрын

@Kaushik Chakraborty UPI won't give any cashback or rewards

In California, it's illegal to charge consumers a fee for using a card, but businesses sometimes offer discounts for cash. Reward money is actually paid through fees of retail. The consumer benefits and retailers have to pay the price.

Thanks for the video. The bank fees seem small compared to sales tax.

@kazansky22

Жыл бұрын

Yea sales tax here is about 12% on some purchases when you add in the mandatory government imposed "fees" on top of sales tax.

I pay cash for everything from groceries to gasoline to dining out. I have one, just one, credit card and use it only in emergencies or when a merchant declines cash, which actually happens sometimes.

Great video!

I used to wonder how credit cards with great rewards like 5% cash back were able to make a profit, especially when these cards are only given to those with a high credit score. High credit scores means they know how credit works and won't be paying any interest or fees. I assumed they just charged the merchant fees each time the card was used and I see that is the case now. Nice to see a video go in depth

@nothanks8839

Жыл бұрын

The other major factor is that there are millions of people with bad credit scores who will rack up huge amounts of interest. The bank is aware of this, the people who are irresponsible with credit end up effectively paying for some of the rewards given to the people with high scores and fancy cards.

@Uniacoty

Жыл бұрын

@@nothanks8839 yeah for regular cards but I meant specifically for cards are only accept you with very high credit score, high annual earnings. But I do suppose credit card companies all have lower tier and higher tier credit cards, so the profit they make off of people with lower tier cards make up for any loss they recieve on their higher tier cards

The only difference is telling the customer that they pay for it and people that pay in cash aren't subsidizing credit transaction. It has always been like this you just were not allow to charge for it. Pizza shop owner 2000 - 2018.

@kiagenwa

Жыл бұрын

I've seen some stores give 'discount for cash payment'. I think it's better idea than saying 'credit card charge'.

@Monkwrestler

Жыл бұрын

@@kiagenwa number one rule in psychology a loss hurts way more than a gain saying you give cash purchases a 2% discount is far more effective than a 2% surcharge

@Avantime

Жыл бұрын

Outside America it's routine for many stores to add a credit card surcharge. If you swipe a credit card at a store you have to press Enter to agree to the surcharge before you enter your PIN.

@bngr_bngr

Жыл бұрын

If I see a cash only at a restaurant I won’t eat there. There are to many restaurants to be forced to pay cash.

@TheSaikou96

Жыл бұрын

@@bngr_bngr not gonna lie the best food is at the cash only restaurants

I used to work in Fintech for a big company. And yes I've seen small to medium businesses summary ranging from $500-$5k a month in fees : /. Some would call every year to negotiate the fees.

Some countries use more digital wallets where you load up cash on your cards. Such as G-Cash in the Philippines. Would be interesting to compare the fees for that to U.S. credit Cards. The fees for Debit Cards is not necessarily lower here compared to credit card fees. There's a bit that goes into determining how much a business is going to pay in fees based on volume, whether they have a lot of large vs small transactions, etc. What's interesting are companies that actually force you to use a credit card to pay your bill otherwise they will charge you a fee. Some electricity companies and cable companies for example require a credit card (auto pay) and paperless billing to get the low rate. Maybe that guarantees payment, but you already did a credit check, and I'd be willing to use bank electronic payment or ACH, but that doesn't fall into their agreement for the low rate. The other benefit for credit cards are the protections they may offer. Buy something and it breaks the next day, you may have more leverage with a credit card than with a cash payment. Or worse, a company disappears with your cash before they have provide the full services.

Wow i was just thinking to myself why it's becoming more expensive and this video pops up. How timely! I almost don't want to use a credit card anymore, what's the point if my rewards are all being killed by transaction fees

on the consumer side, it pushes you to 1.) make sure you're getting better return on the most convertible credit card reward currencies possible which are not subject to arbitrary inflation by whomever controls currency (ie amex points or chase points instead of united or delta miles 2.) use those reward currencies regularly 3.) push us congress to limit these fees so we don't have to play reward currency game to get the best price 4.) push apple to limit apple pay fees (this is 0 for google pay) charged to banks. as it stands, those who pay cash for retail goods and services are getting screwed the most in this whole game.

In Malaysia, we have ewallet that we can pay tolls call for taxis, order food delivery and also act as payment terminal. We are free to use until the transaction cross a certain amount.

In Norway, we ususally have two networks on our debit cards (which is the normal type of card, not credit). We have a national network called BankAxept, that costs 1 cent + 0,06% of the transaction for the merchants. If the merchant not accepts BankAxept, if you have to use the card outside of Norway, it switches over to MasterCard og Visa (depending on the bank). Credit cards is only Visa or MasterCard. Merchants are not able to add extra charges for use of an accepted payment method, but if it was allowed it would probably be for paying cash. Handling cash is really expensive compared to card transaction, even compared to Visa and MC.

It is pretty surprising that the companies that claim to take the fee to support security and innovation failed to pretty much do either of that.

@jamesbaxter222

Жыл бұрын

Which companies are we talking about here? I work on the mainframe(the tech responsible for securing and processing credit AND debit card transactions through a program called CICS), and the mainframe has the highest level of security and uptime. The only downside is that the mainframe is very expensive.

@MS-st1zb

Жыл бұрын

I like the, give us your email and we will alert you of any changes or updates. I have yet to this day received any such emails. One was HP, they discontinued a service I was not aware of, worked on it for hours, went to HP support there was the notice.

@BabaDka

Жыл бұрын

@@jamesbaxter222 shutout to zVse!

@tradeprosper5002

Жыл бұрын

My guess is that the fees in China are considerably lower than here. Reward cards subsidize the well off.

@cyclost

Жыл бұрын

Try chargeback when you paid with cash?

True Visa and Mastercard spend some of their fee revenues on security and innovation - but they also have astronomical profit margins, virtually the highest among all large companies, due to their oligopolistic market position.

What I’m finding is that some businesses are taking the opportunity to increase the surcharge above the credit card fees.

@Dudanation12

Жыл бұрын

Credit card fees range wildly. I can cost a merchant up to 6.25% with my cards, depending on who they are.

@Seth9809

Жыл бұрын

The video literally said that some fees are crazy.

@amperesclaw9203

Жыл бұрын

The cashback from the card can make the difference

Aren’t the credit card fees a deduction from business taxes?

@PetePuebla

Жыл бұрын

I’m no accountant but I believe they are.

@mzr5165

Жыл бұрын

Yes but they still have to pay the cost of the fee. If they didn't have the cc fees than their income would be 2-3% higher.

@ohhellnooooo8233

Жыл бұрын

all expenses are... you get taxed on profit. but that doesn't mean it doesn't cost them money. Relevant Seinfeld video: kzread.info/dash/bejne/inmAmJegqdrdeLQ.html

We are already paying more for everything with inflation. And I don't think they should remove credit, assuming you have some foresight, control in your spending it can be extremely good, you have the benefit of paying over a later time. I would argue going purely by debit is more of a stress in that it's spent like cash. Credit card, as a benefit, is safer in that aspect

@GameFuMaster

Жыл бұрын

yeah, arguably you could collect a few extra dollars over the course of a month with the money sitting in your bank account, but honestly, that's not going to cover the higher costs in the first place.

@GrizzlyJesseDoes

Жыл бұрын

There’s apps that allow payments with your debit like Klarna, sezzle, affirm, and zip pay. Just wanted to let you know

We have wire transfer system here in Thailand. Basically the merchant generate a QR code, you use bank app to scan it, enter password, then the cashier get green. SME can also use business/personal account to receive money manually with a QR, though they have to verify each transfer as a popup in their mobile or take a photo to check later. This system can replace CCs, but even then many shops still refuse to accept bank transfer for who-knows-what reason.

@nametag4277

Жыл бұрын

One reason would be hiding income from the tax system.

@LittleRadicalThinker

Жыл бұрын

@@nametag4277 I think going through bank system will not be able hide at all. It’s more likely a trust problem, or maybe the checking process, which by itself a lot of additional work.

@michaellim4165

Жыл бұрын

This would only work if you have a standard that is the same across all banks, but that isn't the case. That is why card processing services are available to help minimize this fragmentation at a cost.

@VEVOJavier

Жыл бұрын

That's the case in most SEA countries, but at least here in Indonesia, and I know in India too, it's not a direct account to account transfer. The transaction still goes through a central interchange that charges a 0.7% fee. I wouldn't be surprised if it's the same in Thailand (I used the qr payment through my kbank app a lot while I was there). Still much cheaper than accepting card but this is one of the reasons why some merchants, especially those with very thin margins, still don't want it.

@nametag4277

Жыл бұрын

@@LittleRadicalThinker I know, I was talking about cash transactions

Cash industries may be tempted to evade tax by understating sales. I always ask for a discount for cash or use a debit card if the merchant adds a fee to use a credit card. Fees by merchants are legal in Australia.

This story doesn't mention that credit cards also charge interest to most people because they don't pay their balance in full. These interest charges fund rewards programs as well. It also doesn't mention that many growing card processing like Square and Venmo preferred by small businesses charge a flat processing fee regardless of what card you use.

I refuse to go to places that put a surcharge on final bill. Just build everything you need into the item cost.

@Crovea

Жыл бұрын

That's just taking money from people who don't pay with credit cards and giving it to the credit card company and their customer. It's hardly the shops fault

@giantlabs

Жыл бұрын

@@Crovea then go cash only. No one is making businesses take credit cards.

@Crovea

Жыл бұрын

@@giantlabs VISA and mastercard are forcing the businesses to take credit cards. They can't just accept reasonable fee'd debit cards

@todoldtrafford

3 ай бұрын

It’s not a surcharge. It’s a cash discount !

Businesses in Russia don't count the fees for serving the credit card payment. It's kind of standard in customer service to have a cashless payment. And it's a really strange when cafees or restaurants add the additional fees for cashless payment (probably here in Russia fees are in price and it's more convenient when you know the final price when you're ordering).

@wadexyz

Жыл бұрын

...and if they don't like, they get thrown out of a hotel window

There was no mention of the PayWave fee the card companies charge as well. That’s another 3% the merchant has to pay. I’ve been in places where they’ve tacked it onto the price at checkout or just turn off the facility altogether on the machine. There’s some fintech companies in NZ that are tackling that issue. One of them sounds like it’s close to UPI where’s it all done via a digital wallet & QR codes.

I live in the UK and I'm certain that I've saved at least 10 hours of my time by not waiting in line to use cash. The self service machines take card, but not cash, and they're almost always available. Using cash means waiting in line. Also the card fee isn't added onto the bill where I live, it's included in the price of everything sold in store. Using cash is too inconvenient and time consuming. Shouldn't card fees should come down as demand goes up? Maybe there needs to be more competition than just VISA and Mastercard?

@kebabskiauras8851

Жыл бұрын

YOU know the machines can take CASH and credits cards....atleast they do where I live.

Most businesses only accept Visa and Mastercard because they think that Amex and Discover are the only “premium cards” with high fees. This is ignoring the fact that both Visa and Mastercard sneak in their mid-tier and premium cards along with their low tier cards. Cards such as Visa Signature and Visa Infinite. And Mastercard World and Mastercard World Elite.

@Dudanation12

Жыл бұрын

AMEX is still horribly more expensive. Figure at least 3% for the cheap ones and as high as 4.5 or even 5% sometimes. Discover is cheap though.

Most of the locally owned restaurants in my area now have two prices on their bills - a cash price and a card price. Usually a 3% difference. I own a construction business and all of my vendors charge more for cards than cash or check. A few years ago all these vendors promoted cards. Now they push checks for large purchases.

The mom and pop variety stores I go to here in Toronto do not accept credit cards, and if I use debit, I am surcharged between 25 to 50 cents.

Kind of the same thing I experienced last month. I'm In an Apple Retail store here in the Philippines trying to buy an iPhone but there will be an extra 100$ charge if I bought it using Debit/Credit.

@markfrancistrono9041

Жыл бұрын

Is this PMC?

@PaulMaglaya

Жыл бұрын

Is it an official Apple store or a licensed third-party store? Because as far as I know, there’s NOT YET an official Apple store in the PHL as of August 2022.

@wavenskie

Жыл бұрын

@@PaulMaglaya third party, common sense isn’t a thing?

@jamie7664

Жыл бұрын

@@wavenskie Use your common sense and buy yourself grammar lessons.

Another solution is for business to give discount if cash is used? Am I missing something here?

I’m surprised that even small developing countries like Cambodia has centralized banking platform, Bakong that do not charge retailer and merchant any fee while US retailer still has to pay the fee.

These days businesses that need to accept debit/credit cards can use an online payment processing service like Stripe - owned by Wells Fargo. Stripe charges 3.6% of the purchase/invoice amount to collect the payment and transfer it into a separate bank account, or users can keep the funds in their Stripe account and use it to make online payments. If they want to charge they what to pass the payment processing fee along to customers, they need to add that 3.6% fee to the bill before processing the payment. Much better than resorting to the even-more-costly Paypal option. Banks like Chase also offer business customers the option to accept credit/debit cards online or using a card reader. The online option costs 3.6%; using the reader costs 2.6% plus 25 cents per transaction, plus the cost of buying the card reader hardware (between $50 and $200 depending o the hardware). For service and online businesses, it's faster, more secure and easier than accepting a check - especially since so many people with "checking" accounts don't ever use a single check these days. It's just the cost of doing business in the 21st century.

WSJ should also make a video about UPI. India is working on removing this fees. And rather, penalizing cash payments, Via charging the ATM withdrawals.

@ravishmadhan

Жыл бұрын

Truuu

@anustubhmishra

Жыл бұрын

its kinda crazy how things changed in just a few years like only 2 years ago I started using upi and now even my parents are using upi to shop instead of cash. now it is expanding overseas so i would love to see a video about it

@jimwerther

Жыл бұрын

United Press International?

@anustubhmishra

Жыл бұрын

@@jimwerther upi = unified payment interface. its basically like paypal except you don't need a wallet and payment can be done in any app. so it has become the largest mobile payment interface in the world this year

@jimwerther

Жыл бұрын

@@anustubhmishra Thank you for explaining 👍

Businesses have to incorporate credit card fees into the cost of doing business. Like they do with other costs. Not single out credit card fees and pass it onto the consumer. They don't do this when the electricity cost goes up or an insurance increase. I use to have a retail business and you absolutely increase sales by accepting credit cards so in most instances it pays for itself.

@TimBryan

Жыл бұрын

Exactly! So many of these small business owners think that the CC fee is taking away from their net profits, when the fee is the price to pay to exponentially increase them.

@markenerrrthing

Жыл бұрын

thanks for the input.

@samsunglg6671

Жыл бұрын

@@TimBryan 🎯

@mingqiz

Жыл бұрын

Agreed. I personally wouldn’t shop at cash only places unless absolutely necessary.

@StreakyBaconMan

Жыл бұрын

I'm sure you do increase sales by accepting credit cards. I am sure you would have increased sales by an equal amount by accepting credit cards that charged lower fees because it was illegal to charge more.

I have numerous cards with differing rewards (%). Never have I been influenced to spend more because a card offers a higher reward.

I have worked for a Merchant ISO downstream from Fiserv for a few years, and this is a BIG deal. Small business paying 3% in CC fees might not sound like a lot, but at a 20% profit margin the fees equal 15% of total profits! The gov’t has an incentive to fix this too… paying/preferring cash means some businesses can shave sales tax and even income tax receipts, whereas it’s not worth the risk and there’s not point in pushing cash if electronic payment fees charge 50 basis points. I guess we’ll see what happens

As a merchant, i dont mind taking a hit for processing fees because it’s convenient & more flexible for my customers. And as a consumer i love using my credit cards. Best rewards & safest method of payment.

@michaelwarren2391

Жыл бұрын

"Do" mind????

@docsays

Жыл бұрын

@@michaelwarren2391 - good catch. i meant "i don't mind".

It's interesting I've noticed lately how I now need 5+ CCs just to avoid missing out on the basic rewards. I guess we are going back to the debit in 10 years

I had to switch CC processing. I was paying 3% on the transaction total. When you have a high cost on parts, low labor profits, that 3% swung on average 3%~27% crazy. Now,3.5% its automatically added to the transaction! Had to!!!

2:35 Yup and that’s why if a business annoys me I’ll get back at them by using my AMEX Platinum to make sure they pay a higher fee.

That actually how you can tell if it's a small business just hanging on or a sophisticated business looking to grow. The latter has already added the fees into the final cost.

Businesses should start paying discounts of 3-5% for paying in cash or by debit cards in order to achieve a sort of parity in net revenues.

@orpheux8021

Жыл бұрын

The thing about credit cards are rewards I get 4x back in restaurants, but my points can be redeemed 2 cents per point making it around 8 percent on my purchases. I will never stop using credit cards you will always end up loosin money with cash and debit.

I like WSJ videos...high talented journalism.

In India there’s allocated budget to provide 0 MDR transactions, they don’t use physical cards but scans qr codes. Not depended on visa or Mastercard networks.

These businesses WANT to accept credit cards because people spend more money when they use credit, and it's super convenient, which brings in more business. There is a "cost" to doing that business, but now these businesses don't want to pay it. If I'm going to be charged an extra fee because of how I pay, then my choice would be to shop elsewhere.

@h.d.h

Жыл бұрын

They don't want to eat the cost because it keeps going up arbitrarily. So either they can raise everyone's costs together or make credit card users pay. The former isn't fair for cash payers.

@JVIPER88

Жыл бұрын

@@h.d.h They don't want to pay the price for the convenience and benefit of credit card purchases. Like I said, they accepted credit because it makes them more money. They COULD choose to go back to accepting cash or checks only, if the interchange fee is such a burden, but they aren't doing that. Instead, they're using the fee as an excuse to make extra profit by charging customers above what their actual expenses are. I choose not to let merchants play that game.

Merchants can dictate their own margins so them paying a fee for me using credit won't make me have sympathy for them. Credit cards have awarded me over $2000 in cash back and bonuses, I think ill stick with credit!

@chrischungy

Жыл бұрын

No, you're just getting your money back because the stores raised their costs.

@ttrev007

Жыл бұрын

But what if that $2000 cash back cause your bills to be $6000 more? You don't know how much extra you are paying to get that $2000

@cardojp

Жыл бұрын

@@ttrev007 I pay $0 extra

@cardojp

Жыл бұрын

@@chrischungy and you lose money if you pay cash for the store raising their price

@LividImp

Жыл бұрын

You're a real dope if you think you're actually gaining on the credit card company. I'll bet you've got a fool proof way to win the lottery too.

I pay cash and avoid the tip prompt which is all around; even when buying to go food

Businesses in Denmark and the EU may not charge a fee for your payment with Dankort, Visa/Dankort, Visakort, MasterCard and other common payment cards issued in the EU

That's why you need to have a credit card that gives you points. There's a lot of there that, you just need to strategize

@Bobbobbob984

Жыл бұрын

Yes, but isn't it a little annoying you have to work to game the system(and be incentives to spend more) to not get screwed by subsidizing these fees.

@veganpotterthevegan

Жыл бұрын

@@Bobbobbob984 it's not really getting screwed though. If you can afford it, use cash if you don't wanna pay that fee. I'd much rather pay that fee than having to carry cash on me. The high interest rates regardless of your credit score are a much bigger issue. I never pay interest because I pay my cards down. But I have a 760 credit score and only one of my 5 credit cards are under 20%

@BlackWolf207

Жыл бұрын

But when places start charging surcharges, it’s usually like 3%. Usually rewards on credit card rewards are like 1-3%. At that point the rewards incentive of a credit card kind of goes out the window.

Are services like Apple Pay, Venmo, Zelle, etc. cheaper to use?

@LasdilElizaga

Жыл бұрын

Apple Pay gets the cut from the issuing bank. And the bank also pay Visa/Mastercard processing fee. So it’s just the same as credit card

I remember when I used to use my debit card for every transaction! That is when Chase Bank had a very lovely point system. I can not tell you how many AMC, Sephora & Starbuck giftcards I racked up! I no longer carry my debit card, yet I do love PayPal, Apple/ Samsung & Google pay! 🤷🏽‍♀️

If I remember Econ 101 correctly I was told consumers set prices with consumer demand.

The question I would have is, why do credit card fees need to go up? I understand that you need talented programmers to constantly combat different types of theft, etc., but they profits this industry is making is already huge. They can go many years keeping prices where they are while still making handsome profits. No, what they're doing is, now that more and more people use credit cards, they're raising rates because they know there's no competition. I guarantee you if all of a sudden, everyone started using cash or debit cards, the fees would drop.

If a business is charging extra 2-3% just to use a credit card they are essentially removing the rewards that the card is giving out(cash back, travel rewards etc…) In my opinion the fees charged to the Business is just an expense thats part of doing Business.

In Malaysia we use scanning qr code to pay, its called cashless. If you want to withdraw your money, use qr scan. NO NEED TO INSERT DEBIT CARD

Cash has overhead and prone to errors. Card fees are split in half as user (very often) gets 1.5% back

Cash has its costs too. Companies have to keep track of something that is easily stolen. They have to have the right currency in as many cash registers as they have. Outside companies, not the banks themselves, handle the transportation of the cash. I used to use a bank that operated with ATMs that even the tellers used. Credit cards make for more secure and faster transactions. Even Walmart, which in many areas, caters to cash-using customers, many of their self-checkouts are credit card only, so they don't have to bother with cash.

@PraveenSriram

Жыл бұрын

Well said. I work in the accounting office at Wegmans and deal with cash 💰

@jesseye33

Жыл бұрын

Again the rates of Walmart is definitely wayyyy lower than what is quoted here and different than small businesses. They most probably is only getting 1% whilst others are getting 2-3% fees

Credit card companies are greedy and charge a boatload of fees which is definitely not cool 😎 at all. It is ridiculous in my opinion!

Most people has no clue what CCs cost them in the goods and services they use, in inflating the prices. The worst are those insists in using cash thinking they are smarter. What this very good video should include is the cost to the merchants when consumers use debit card. I know they can't escape the swipe fee which is not much, but I'd like to know the exchange transmission fee.

There are some Stores where i live that started making their own PrePaid Cards with NFC. It is all the convenience of cashless without the fees. And the Store gets money upfront. Kinda like Gift Cards but a step further. I still prefer Cash however

Let's conveniently ignore the ridiculous 36% - 48% interest on outstanding balance, which are the ACTUAL cash cows

@vishalgiraddi5357

Жыл бұрын

Yea, i mean you do use the credit card after reading the terms and conditions, you can always choose to not use credit card and instead use debit card/cash

@nichtsistkostenlos6565

Жыл бұрын

Yeah, well, that's easy to avoid, only spend the money you have and don't carry a balance. The credit card company is offering you a completely uncollateralized loan that you can use for basically any purchase with a month's grace period. That's why the interest rate is so high, there's no guarantee of repayment and people frequently default on credit card debt. If the interest rate was low, then they wouldn't be able to offer credit cards at all.