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Old 07-16-2012, 02:02 PM   #21
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Besides earning the points, I love using credit cards because the statements track my spending. This saves me a lot of effort,
Ever since I started using Mint, I noticed that was a side benefit of using a credit card. I think that is why I'd need a 2 or 3% discount to switch to cash from a credit card.
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Old 07-16-2012, 02:12 PM   #22
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IF anything happens because of this (and I doubt that we'll notice), I'll benefit.

I prefer cash over plastic. So a cash discount or a CC surcharge is fine with me.

I think it's inefficient to use credit just to cash in on "rewards", which are simply a slice of the interchange fee. I'd be better off if they reduce the fee and eliminate the rewards.
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Old 07-16-2012, 03:26 PM   #23
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bingo. The rewards programs have produced upward pressure on the fees merchants pay. Allowing merchants to potentially pass on those costs should in theory create some downward pressure on those fees, potentially resulting in slightly lower overall prices.

I doubt we will actually see many merchants add the fees, but just the possibility may help keep the credit card companies from raising their fees.

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I think it's inefficient to use credit just to cash in on "rewards", which are simply a slice of the interchange fee. I'd be better off if they reduce the fee and eliminate the rewards.
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Old 07-16-2012, 08:37 PM   #24
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I think it's inefficient to use credit just to cash in on "rewards", which are simply a slice of the interchange fee. I'd be better off if they reduce the fee and eliminate the rewards.
While I'm waiting for the credit card companies to proactively leverage their synergies to extract more efficiency from their processes, I'll continue to collect my 2% cash rebate...

In the meantime I'm sure they'll continue to deliver their breathless blow-by-blow updates for free.
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Old 07-16-2012, 09:16 PM   #25
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I think it's inefficient to use credit just to cash in on "rewards", which are simply a slice of the interchange fee. I'd be better off if they reduce the fee and eliminate the rewards.
It may be inefficient from a system-wide perspective (due to higher overall costs), but it's not inefficient from the aspect of the individual credit card user. To the degree that I use a credit card and gain the advantage of a rebate, and the higher exchange costs are transferred (by the merchant) to those paying cash, my transactions are more efficient (for me) than they'd otherwise be. That is--I get more goods for the money spent.
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Old 07-16-2012, 09:53 PM   #26
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It may be inefficient from a system-wide perspective (due to higher overall costs), but it's not inefficient from the aspect of the individual credit card user. To the degree that I use a credit card and gain the advantage of a rebate, and the higher exchange costs are transferred (by the merchant) to those paying cash, my transactions are more efficient (for me) than they'd otherwise be. That is--I get more goods for the money spent.
Finish that last sentence: I get more goods for the money spent ... than the poor sucker paying cash.

I didn't even do a FIFY though it was tempting.
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Old 07-17-2012, 12:31 AM   #27
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There are downsides with cash transactions
1. Cash Transactions often take longer. We all have stood behind people fishing and counting out the money. The merchant may need more staff for checkout lines.
2. Counterfeit currencies.
3. Safety issues. If cash transaction become more prevalent, there may be more possibility of crimes like robbery at vulnerable stores. Stores also have to go to banks to deposit the day's receipt. You can also lose your wallet.
4. Stores may lose from staff making incorrect changes. And remember how many times you get change back in some foreign coins that looked semi-like US coins.

I am so used to using credit cards for payment because of the convenience, reward programs, record keeping, and at one point, when there was actually interest paid for saving accounts, interests earned prior to payment date. Just hoping competition will place a lid on annual fee and the saving in cash transaction is not so large to make that tempting.
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Old 07-17-2012, 04:35 AM   #28
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Finish that last sentence: I get more goods for the money spent ... than the poor sucker paying cash.

I didn't even do a FIFY though it was tempting.
It goes without saying. The guy who is paying cash, and the merchant who doesn't/can't charge different prices to reflect the different costs, makes this possible.

I'm a fan of cash. If some entity believes it needs to know where I've been and how I spend my money, I prefer that they be put to the bother of actually following me around. But the convenience of a CC and the 1-2% rebate is more important to me than privacy concerns. If the rebates are eliminated and there's a discount for paying cash, I'll be using more of it.
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Old 07-18-2012, 09:04 AM   #29
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"The $7 billion settlement between Visa, MasterCard, some large banks and retailers, if approved, sends a strong message to consumers: Buck up and plan on paying for the privilege of using a credit card or any other payment method."

Credit-card pact no deal for consumers - Yahoo! Finance

I think the biggest winner from this will be Discover card
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Old 07-18-2012, 09:09 AM   #30
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There are downsides with cash transactions
1. Cash Transactions often take longer. We all have stood behind people fishing and counting out the money. The merchant may need more staff for checkout lines.
2. Counterfeit currencies.
3. Safety issues. If cash transaction become more prevalent, there may be more possibility of crimes like robbery at vulnerable stores. Stores also have to go to banks to deposit the day's receipt. You can also lose your wallet.
4. Stores may lose from staff making incorrect changes. And remember how many times you get change back in some foreign coins that looked semi-like US coins.

I am so used to using credit cards for payment because of the convenience, reward programs, record keeping, and at one point, when there was actually interest paid for saving accounts, interests earned prior to payment date. Just hoping competition will place a lid on annual fee and the saving in cash transaction is not so large to make that tempting.
I was thinking along the same lines, especially with #1 about cash taking longer. Can you imagine if there was a large line ahead of you, all writing checks the old fashioned way. That'll sure add time.

But I suppose, they could just use a debit card from their bank as debit cards aren't part of the pact. Unless, the consumers avoid debit cards because of their banks' transaction fees with that.
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Old 07-18-2012, 05:31 PM   #31
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It may be inefficient from a system-wide perspective (due to higher overall costs), but it's not inefficient from the aspect of the individual credit card user. To the degree that I use a credit card and gain the advantage of a rebate, and the higher exchange costs are transferred (by the merchant) to those paying cash, my transactions are more efficient (for me) than they'd otherwise be. That is--I get more goods for the money spent.
Correct. I was talking about the system. What the rewards people gain is a little less than what everybody else loses.
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