Re: Credit card fees - hmmm



On Jan 28, 6:26 pm, Scott en Aztlán <scottenazt...@xxxxxxxxx> wrote:

Say you charge $1,000 at the beginning of every billing period and pay
it off in full by its due date a month or so later. That's essentially
an interest-free loan from the credit card company. Those who carry
balances on which they pay interest and fees are subsidizing
cardholders with no revolving balance.Bullshit. When I made that $1000 purchase, some store owner paid $25
or more in merchant fees, providing a return to the CC company on the
money they loaned me. But don't think the merchant is subsidizing my
interest-free loan, either. Merchants don't eat the merchant fees -
they pass them right along to the consumer in the form of higher
prices. Thus, there is NO subsidizing going on - I pay for my
"interest-free" loan myself in the form of higher retail prices.

Which means there is a subsidy by those who don't use the cards.

I only use them on purchases above $15 usually. Otherwise, the
merchant may not make anything at all on the sale.

.