Capital One

[MadJack]

hate to burst your bubbles ladies, but you are off base with your hypothesis that credit card companies hate you because you pay off your balance.

Credit card companies recieve money from the merchant every time their card is swiped through the little plastic box that you check out at. It is in a credit card company's best interest for you to have their card at the FRONT of your wallet and the card you go to when you need to make purchases every day.

CC companies will normally get a flat fee, plus a % of the sale for each transaction their card is used for.
Remember when you used to see signs at gas stations, cash price was a few points lower than the price if you paid with a CC? it wasn't just because they had to print off that little slice of paper for a reciept for you. it was because that money went to the credit card company.

enough regulation has been passed through to make it unallowable for businesses to offer two different prices on items.

sorry to bust that bubble.

Also - you may notice that some places don't accept amex. that's not by chance either. Amex has higher merchant fees than visa or mastercard.. hence most business cringe when you pay with amex vice that cheap visa or mastercard.

you didn't bust any bubble :shrug:

 

[marine]

Actually, you are the customer they are glad to get rid of. They don't make much money off of you.

this was the bubble.

 

[sportsman]

TRUTH....


free loaders...THAT'S ME...:0028

free loader here:toast:

 

[Old School]

Remember when you used to see signs at gas stations, cash price was a few points lower than the price if you paid with a CC? it wasn't just because they had to print off that little slice of paper for a reciept for you. it was because that money went to the credit card company.

enough regulation has been passed through to make it unallowable for businesses to offer two different prices on items.

local Texaco's offer 5cent off per gallon of gas when you pay with cash...with sign outside promoting offer.


CASH..it's beautiful thing..

 

[yyz]

this was the bubble.

Well, you're dead wrong, so I DON'T hate to burst your bubble.


Absolutely, they make money from each transaction at the desk, pump, whatever. But it is a very small %. It's not the 19.9% or 29.9% anual they make for years at a time of off millions of comsumers who run their bottom line. Not to mention the outrageous finace charges that they slip in when you are late, or even miss a payment on a loan that isn't even their business!


A company would rather have three members who have a $7,000 balance constantly, than 10 members who pay the card off every month.

 

[marine]

Well, you're dead wrong, so I DON'T hate to burst your bubble.


Absolutely, they make money from each transaction at the desk, pump, whatever. But it is a very small %. It's not the 19.9% or 29.9% anual they make for years at a time of off millions of comsumers who run their bottom line. Not to mention the outrageous finace charges that they slip in when you are late, or even miss a payment on a loan that isn't even their business!


A company would rather have three members who have a $7,000 balance constantly, than 10 members who pay the card off every month.

you're right yyz. i have no idea what i am talking about with credit card companies and loyalty programs designed to retain customers to that brand and operating models. i stand corrected.

 

[ferdville]

Shouldn't cancel cards - it does lower your credit score. You are better off charging $5 a month and paying it off each month.

New law coming out soon where the banks are going to have to tell you how long it will take to pay off your credit card if you only make the minimum payment. That is going to be a huge shock to some people. May be law already - haven't seen it on any of my bills yet.

 

[MadJack]

In the last year I have had 2 cards cancel ME for non usage. I never used either one and had them for about 10 years :142smilie

 

[yyz]

you're right yyz. i have no idea what i am talking about with credit card companies and loyalty programs designed to retain customers to that brand and operating models. i stand corrected.

No, no! I stand corrected. I called three major players in the field, and they all agreed with you:

These companies don't want you having a balance each month in the thousands of dollars. They don't want you making the minimal payments, or ever being late with a payment. They HATE charging those ridiculous fees, and would much rather everyone paid their bill on time, so they could just profit on the monies paid by retailers in service charges.

 

[marine]

No, no! I stand corrected. I called three major players in the field, and they all agreed with you:

These companies don't want you having a balance each month in the thousands of dollars. They don't want you making the minimal payments, or ever being late with a payment. They HATE charging those ridiculous fees, and would much rather everyone paid their bill on time, so they could just profit on the monies paid by retailers in service charges.

one word for you: chargeoff

 

[vinnie]

one word for you: chargeoff

 

[yyz]

one word for you: chargeoff

Why would they charge it off when they are making money on it day in, and day out?

And as a consumer, if you are willing to ruin your credit for years by charging off.........go ahead.

 

[marine]

Why would they charge it off when they are making money on it day in, and day out?

And as a consumer, if you are willing to ruin your credit for years by charging off.........go ahead.

dude, has like economic and financial news not been published by you? does it stop transmitting past Lomira or something?

 

[The Joker]

dude, has like economic and financial news not been published by you? does it stop transmitting past Lomira or something?

Now that's funny! :mj07:

 

[yyz]

dude, has like economic and financial news not been published by you? does it stop transmitting past Lomira or something?

Stick to your circle jerks.