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Thread: EAD Credit Card Companies

  1. #1
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    EAD Credit Card Companies

    http://www.latimes.com/news/opinion/...,7030888.story

    It seems like a no-brainer. Your credit card offers you a $1 reward for every $100 you spend. It's not a huge payback, but it's something: a rebate that might as well be free money.

    Who wouldn't sign up for a card with rebates instead of one without them? And then, who wouldn't swipe the card for everything groceries, gas and the movies?

    The fact is, credit card rebates are hurting, not helping, many unsuspecting consumers.

    These programs raise prices for everyone in ways that most people do not recognize. They also encourage people to use credit unwisely. And they punish those with the discipline to buy only with cash.

    The primary winners in the rebate game are the credit card companies. They offer these programs because they profit from the interest rates they charge their cardholders and from the fees they charge merchants. The rebates encourage people to use credit instead of cash, and the credit card companies' profits increase.

    Merchants who generally must accept credit cards from their customers to be competitive are caught in the middle. They pay high fees to the credit card companies when their customers pay with credit cards. But the merchants benefit because they are paid quickly for credit sales, they do not have to incur the costs involved in extending their own credit to customers, and they do not have to worry about bounced checks. Although they rightly complain about high merchant fees, they can ultimately pass them along to their customers in the form of higher prices.

    Who gets hurt? The consumer. Especially the cash customer.

    More generous rebate programs mean the credit card companies must charge merchants higher fees to pay the rebates, and higher fees mean higher prices for everyone. All customers pay the higher prices, but only the credit customers ultimately receive the rebates. So cash customers are the ones most hurt by rebate programs. They bear the brunt of these rebate programs.

    Many cash customers do not use credit because they want to live responsibly within their means. For some, credit abstinence is their ultimate protection against credit abuse. Some are simply too poor to qualify for credit. It is shameful that despite their poverty or their discipline, cash customers pay higher prices so that others can use credit cards and get rebates.

    Our government can solve this problem. Perhaps the best solution would be to make merchants advertise and tag goods with cash prices the cost to the consumer minus the credit card merchant's fees rather than just the prices that include the credit card markups.

    The difference between seeing cash vs. credit card prices is very important. Marketing studies show that people are more likely to use credit when they do not see that they are paying for it than when they pay an explicit charge to use credit. Consumers are also much less likely to ask for a cash discount when doing so is not the norm.

    Merchants must quote their prices on a comparable basis to ensure that comparison shopping is not unnecessarily confusing. Thus, government regulations that set pricing standards are completely appropriate. Unfortunately, now we generally see prices that include credit card costs rather than vice versa.

    California and nine other states already regulate pricing standards, but they choose the wrong standard. Under the influence of the credit card companies, they made it illegal for merchants to post a price and then add a surcharge for using credit. Rather than consumers clearly seeing the cost of using credit cards on their receipts, those costs remain hidden.
    Translation: Instead of making money normally...rip people the f*ck off.

    Credit cards are for f-ing morons.

  2. #2
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    Quote Originally Posted by PlumberKhan View Post
    Credit cards are for f-ing morons.
    -realtalk-

  3. #3
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    Quote Originally Posted by FF2 View Post
    -realtalk-
    My idiot brother just got one the other day. I watched him walk into 7/11 and buy a pack of smokes with it.

    Lung Cancer. Now with 21% interest! What a deal!

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    Quote Originally Posted by PlumberKhan View Post
    Translation: Instead of making money normally...rip people the f*ck off.

    Credit cards are for f-ing morons.
    Wow, I agree with you!!!!

  5. #5
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    Quote Originally Posted by PlumberKhan View Post
    Credit cards are for f-ing morons.
    I pay for most everything by either my Amex or Visa card tied into the Hilton Hotel HHonors program....both of which carry no annual fee.

    Then I pay off the credit card each month and incur zero interest charges.

    I take lots of trips (kids in college will make that happen) and I basically haven't paid for a hotel room in over a decade.



    Your brother may be a moron..I'll take your word for it.

    But I assure you I am not.

  6. #6
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    Quote Originally Posted by Phoenixx View Post
    I take lots of trips (kids in college will make that happen) and I basically haven't paid for a hotel room in over a decade.
    You don't. Look at the article. Everyone who pays cash pays for your hotel rooms.

    You welfare queen, you

  7. #7
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    Quote Originally Posted by PlumberKhan View Post
    You don't. Look at the article. Everyone who pays cash pays for your hotel rooms.

    You welfare queen, you

    Then anyone who pays cash would be the moron..not me.









    Oh, and thanks.

  8. #8
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    Quote Originally Posted by Phoenixx View Post
    Then anyone who pays cash would be the moron..not me.
    I was gonna get a credit card years ago.

    CC Company: "Sorry, we cannot offer you a card at this time."

    Me: "Why not?"

    CC: "You have no credit. You don't have bad credit, just no credit."

    Me: "How do I get credit?"

    CC: "By having a credit card and paying the balance, of course"

    Me: "But you just told me I can't have one"

    CC: "Precisely. You have no credit."

    Me: "That doesn't make any....LOLCROFY"

    That and when I paid a car loan off early and it hurt my credit score, I swore the a**holes off. Can't make that sh*t up.

  9. #9
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    Most hotels won't take cash!

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    Quote Originally Posted by MnJetFan View Post
    Most hotels won't take cash!
    lolz...

    ...much better to accept maxed out credit cards as an insurance policy on trashed hotel rooms



    Front desk automatons won't take it...but their bosses certainly will!

  11. #11
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    Quote Originally Posted by PlumberKhan View Post


    Front desk automatons won't take it...but their bosses certainly will!
    the article you posted said that CC buyers were screwing cash buyers. Why stay with cash?

    as for hotels which is better to give a nice hotel 300 dollars in cash for them to hold on to... or just swipe a card? even debit cards they take the money and give it back a week later.

  12. #12
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    Quote Originally Posted by PlumberKhan View Post
    I was gonna get a credit card years ago.




    That and when I paid a car loan off early and it hurt my credit score, I swore the a**holes off. Can't make that sh*t up.
    Apparently you missed out around your 18th birthday when the mailbox flooded with applications...

  13. #13
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    Quote Originally Posted by Revi$_I$l@nd View Post
    Apparently you missed out around your 18th birthday when the mailbox flooded with applications...
    lol...I didn't miss that. All I know is that Hue G. Rection, Mike Rotch and Amanda Huggenkiss must have STELLAR credit by now


    Quote Originally Posted by bitonti
    Why stay with cash?
    Because it's a game I don't really feel like playing.

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