Why do we tolerate a 3% "credit card" fee?

[Guest bkelm18]

I am highly confident if consumers just avoid the retailers that charge the fee, in a free market society, will bring those businesses to their knees to change their business model. The consumer has all of the leverage, we just need to exercise it to impose market conditions. We truly have choices.

They ALL charge credit card fees. Some retailers just factor it into the price of the product. Some are upfront about it and give you the option of paying cash for a lesser price. Either way, if you're paying with a credit card you are paying that fee.

[Guest Lester Weevils]

I made my best deal on a new Silverado. After the numbers were crunched I handed them my GM MasterCard and reduced the amount to the tune of $4K. I repeated that with $3K on a Monte Carlo and $3K on a Suburban. This was before they reduced the amount you could use.

I pay for everything with a credit card and don't carry a balance. I have the money to pay cash for everything I buy, but I can’t walk away from free cash like that.

I use a Sears MasterCard now and just got a $500 gift card in the mail.

I didn’t pay a credit card fee at G&L, HG, FGS or on-line at CDNN. I do at Buds, but they are up front with it.

Yup, I don't think of my plastic as credit cards, but rather as cash back cards. I've bought a lot of ammo over last few years with kickback from ATT Universal Card, and it's probably not even the best one any more for all I know.

I don't carry balances either. Maybe it is foolish not to exploit a rigged system by adjusting one's buying patterns according to cash-back offers. But the system is rigged so bad I refuse to exploit cash-back inducements out of orneryness. It is the same as adjusting one's economic behavior to minimize gov tax rather than maximize one's own benefit. Like a lab monkey wearing a shock collar.

Cash back card makes you a conspirator in the rip-off. Intentionally adjust yer economic behavior to use that mega-bank slave card on as many purchases possible to get yer one percent, helping mega-bank corp to maximize its 2 percent rip left over after they deal you in on a slice of the ill-gained loot.

Just like it would be better if EVERYBODY had to write a check to uncle sugar every april 15 for their entire income tax bill, IMO it would be better if ALL merchants would offer the cash discount (or the credit card charge, whichever way they like to run the deal). That would fight against the banks leeching the productive parts of the economy just as bad or worse than the gov does.

[Oh Shoot]

.... But the system is rigged so bad I refuse to exploit cash-back inducements out of orneryness.....

Do you also refuse to use grocery store discount card they all issue? Makes just as much sense, and I'm sure they appreciate the extra profit just as much as the cc companies do if you don't redeem your points.

- OS

[DaveTN]

I refuse to exploit cash-back inducements out of orneryness.

Thats as valid a reason as any.

[Guest Lester Weevils]

Do you also refuse to use grocery store discount card they all issue? Makes just as much sense, and I'm sure they appreciate the extra profit just as much as the cc companies do if you don't redeem your points.

Hi OS

I use the grocery discount card at bilo. On the other hand, the everyday price at wally world tends to be lower than the discount price at bilo. Without the discount card maybe would shop less often at bilo.

I have three CC's. same accounts for decades. One card hasn't been used for a year or two. Stays locked in the safe. Another card pays a couple of tiny monthly automatic charges. The other card gets occasional use for internet purchases and occasional use in-town if I don't trust a merchant.

I keep three cards for redundancy. Ain't dead in the water if something goes wrong with one card. Handy if you travel but haven't traveled lately. Won't pay hotel and travel bills (or internet orders) straight out of the checking account. If I get ripped while traveling the money won't get stolen straight out of the checking account. CC's have good but limited purpose-- Fraud security on certain transactions and "instant 90 day bank loan" without having to bend over and submit to a banker's proctology exam. They "deserve" a certain service premium for those limited purposes. Long ago 90 day loan interest was pretty low except the annoyance of applying. A CC was more convenient and some CC's in the past had decent interest rates but dunno if that is so any more. OTOH maybe the banks have raised rates on 90 day loans as well. About the only rate banks haven't raised is the interest rate on savings accounts and CD's. Maybe the bank doesn't need our money when they can get all the money they want nearly free, fresh-printed from the federal reserve.

Years ago the only inducement was low interest rate (on premium cards). My CC accounts were repeatedly bought and sold between different companies and they now have punitive interest rates (in spite of excellent credit rating and history), nazi late-fee charges and all kinds of inducements and rewards to use em. Airline miles when I never fly. Gift points I ignore and never redeem. Special quarterly "deals" where you get extra cash back if you gratuitously spend on certain categories over each three month period. One quarter they pay you extra for buying gas and food. Maybe next quarter they pay you extra for buying power tools or whatever. Screw em and the horse they rode in on. I may be a monkey on a shock collar but ain't gonna change my own batteries for em.

You are correct that maybe it would be smart to "bow to the inevitable" and chase every penny of cash back. If a merchant doesn't offer a cash discount then I would rather the merchant get the 3 percent than CCCorp get the 3 percent (or 2 percent if I get an accomplice's cut of the loot). At least the merchant provides a useful service for the money. Depriving myself of the one percent cash back also deprives CCCorp of its defacto tax. Its my futile tiny gesture of starving the beast.

A person grateful to get a pittance of CC cash back seems the same as a person being grateful for a $1000 tax refund check after you paid $30,000 tax. Christmas in April, funded as a tiny rebate out of yer own money.

[Oh Shoot]

.....

A person grateful to get a pittance of CC cash back seems the same as a person being grateful for a $1000 tax refund check after you paid $30,000 tax. Christmas in April, funded as a tiny rebate out of yer own money.

I just don't see it that way at all. I get 150-200 bucks back a year on card through retail gift cards. Used to be more like a grand when I ran bigger biz expenses on card. Wish I could pay rent with it.

When I redeem points, I just pick which stores I need stuff from at the time, usually just go with WalMart, but used to do Cabela's or Best Buy some. If I had much of a social life, might do at restaurants and such, but I don't so I don't. Can do for cash, too, but you don't get as high a percentage as doing the retail gift cards.

I've bought NOTHING with the card I wouldn't have bought anyway, don't pay any attention to "extra point" offers, never carry a balance so pay no interest, just put everything on it I can instead of writing checks. It's actually just found money to me, seems quite illogical to turn it down.

It's like finding x number of Benjamins on the street each year and not making the effort to simply bend down and pick them up.

- OS

Edited May 13, 2012 by OhShoot