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I asked you for factual support for your statement. This response doesn’t in anyway support said statement.
A Supreme Court ruling is factual. :-) Who do you think brought the lawsuit - if there aren't retailers who (have the need to) impose credit card minimums or surcharges, relative to their processing costs on said transactions?
It's common business knowledge small transaction amounts via credit cards i.e. coffee (particularly at convenience stores, where the interchange fees add up quickly) result in paper-thin profits.
Quote:
Originally Posted by mathjak107
It actually amazes me to see how many I see buy a coffee or under five bucks purchase with a credit card.
Hmm. How would you know if it's credit or debit - when all you see is someone swipe a card (or why would you even notice or listen to/think about their total, for that matter)?
Last edited by CorporateCowboy; 03-23-2021 at 06:45 PM..
Reason: added quote/response
A Supreme Court ruling is factual. :-) Who do you think brought the lawsuit - if there aren't retailers who (have the need to) impose credit card minimums or surcharges, relative to their processing costs on said transactions?
A Supreme Court ruling does not support your claim that “most” retailers won’t accept credit cards for a cup of coffee or minimal purchase. You have nothing to show support that a majority of retailers set a min purchase for credit cards, some do for sure but you fabricated that most have mins
Quote:
It's common business knowledge small transaction amounts via credit cards i.e. coffee (particularly at convenience stores, where the interchange fees add up quickly) result in paper-thin profits.
Oh I’m well aware of the cost of interchange fees and how that impacts margins but that’s not what I asked you to support
Yeah, I know you get your little points. And you need to spend x amount to get your bonus. And you need to justify spending a yearly fee for a card because you need to impress people at dinners. But we're all paying a tax for those credit cards through higher prices. Do you really think your points are saving you money? How do you think those CC companies make a profit?
The key is to look at your normal spending choices and lifestyle habits and seeing if there's a card that meets those spending patterns and not the other way around. I ended up going for a Delta Amex card with an annual fee because I was flying with them at least 4 times a year and, since I like to check bags, the card fee was cheaper than I'd pay in bag fees.
And if you get the card, might as well use it, especially since the retention promotions on travel cards have been really good in 2020-21. I spent last summer effectively getting a 5% rebate on grocery purchases.
Going back to the original topic here, there's a spend $15 a month at restaurants, get a $15 statement credit retention promotion on that card this year so every month, I load $15 onto the Starbucks app with that card and let AmEx buy me my occasional overpriced coffee beverage when I'm out and about.
(And as travel resumes, I'll still come out ahead on bag fees and the annual BOGO domestic coach ticket coupon. The metal card associated with that account also does look nice and substantial and I'm kind of bummed to have largely tucked it away for a couple weeks because AmEx literally gave me $100 to get the no annual fee Hilton card they offer and I'll get a couple free Hilton nights once I run $1000 of groceries and utility/teleco bills through it)
A Supreme Court ruling does not support your claim that “most” retailers won’t accept credit cards for a cup of coffee or minimal purchase. You have nothing to show support that a majority of retailers set a min purchase for credit cards, some do for sure but you fabricated that most have mins
You appear as though you never heard the concept of 'passing on the cost of doing business' to the consumer before. To clarify, again, I was speaking to small business i.e. convenience stores (as an example) in which small purchases, such as coffee (per the thread), represent a large part of their business (and margins are already paper-thin). I doubt it likely anyone would single-handedly picket a business over it, though you appear to be ready to do so. :-)
Quote:
Originally Posted by Lowexpectations
Oh I’m well aware of the cost of interchange fees and how that impacts margins but that’s not what I asked you to support
Then you should be aware how credit card fees (and the MDR) are passed onto the consumer.
Quote:
Originally Posted by Lowexpectations
Why would it amaze you? It’s much more convenient for the consumer
Actually, debit cards are cited as being more convenient for most consumers (51%) - particularly when it comes to convenience stores and pumping gas (per Forbes). A bit surprising, as another 15% (or thereabouts) use cash. Hence, it's not a 'big deal' the woman in the thread used her debit card; however, it would behoove her to be more competent while doing so.
Last edited by CorporateCowboy; 03-23-2021 at 10:52 PM..
Reason: typo
You're completely ignoring the profit margin on a $2 cup of coffee vs. $100 of merchandise (and per transaction fees as well).
You are guessing that there may ge a bigger margin just because a sale is more money
.that may be false . A 50% gp may be possible on the coffee while the more expensive items run 25%.
Well, this is WHY you NEVER use a debit card for any transaction, always use credit cards with solid protections.
Wrong, debit cards have fraud protection, and America has shown plenty of people can't use a credit card responsibly.
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