I use discover everywhere, pay 90% of my bills with it. No one uses amex anymore. Pay off all of my cc at end of month, that’s how I stick it to the man. Use their money for a month or so and get money for it.
What you get out of it is generally less than the processing fees. That’s how reward cards work. The seller has to pay the processor to process the payment, and you get a portion of that as a reward.
It may feel like free money to you, but that processing fee is built into the price of anything you purchase.
The things or services I pay with my cc don’t have cash discounts, so no reason to use cash, if you pay them off every month and never carry a balance the cc company doesn’t make money off of my use and pay me to use their money. I’m sticking it to the cc company. Also as you have pointed out that all sellers build the processing fee into their prices I wouldn’t save anything by paying cash.
The CC company makes a killing off your purchases. They charge a fee to the merchant for every transaction. Between that fee and a separate fee for processing the fee, they end up charging between 3.5 and 6 percent more on the transaction, while handing out 2-3 percent in rewards if you’re lucky.
The reason there isn’t a cash discount most places is because it’s actually against the terms of service with the CC company/processors for the merchant to charge more for their customers. The CC company essentially requires that everything be more expensive for everyone whether or not they actually use the cards.
The card companies make absolutely stupid money off those fees.
I use discover everywhere, pay 90% of my bills with it. No one uses amex anymore. Pay off all of my cc at end of month, that’s how I stick it to the man. Use their money for a month or so and get money for it.
What you get out of it is generally less than the processing fees. That’s how reward cards work. The seller has to pay the processor to process the payment, and you get a portion of that as a reward.
It may feel like free money to you, but that processing fee is built into the price of anything you purchase.
You aren’t sticking it to anybody.
The things or services I pay with my cc don’t have cash discounts, so no reason to use cash, if you pay them off every month and never carry a balance the cc company doesn’t make money off of my use and pay me to use their money. I’m sticking it to the cc company. Also as you have pointed out that all sellers build the processing fee into their prices I wouldn’t save anything by paying cash.
The CC company makes a killing off your purchases. They charge a fee to the merchant for every transaction. Between that fee and a separate fee for processing the fee, they end up charging between 3.5 and 6 percent more on the transaction, while handing out 2-3 percent in rewards if you’re lucky.
The reason there isn’t a cash discount most places is because it’s actually against the terms of service with the CC company/processors for the merchant to charge more for their customers. The CC company essentially requires that everything be more expensive for everyone whether or not they actually use the cards.
The card companies make absolutely stupid money off those fees.