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Quick question... Create your own Discover Card commercial? Hoping for any answer. Second question of mine... Link:. |
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I would like to know the answer too. Anyone here know what is the answer. I'll do some poking around and get back to you if I bump into an useful answer. You should email the people at Discover Card as they probably could assist you..
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The.
True Cost of Credit. Site makes no sense to me.. My Schwab 2% card is read as a standard card.. My HSBC 5% card is read as a standard card.. Both are DEFINITELY. Rewards. Cards........... |
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I imagine that "rewards" cards are the ones that charge an annual fee, and come with a partner (like AA or UA). These may be the cards that are billed at a higher rate to the merchant..
This post has been edited by. Kevinkev99. : 09 January 2010 - 01:41 PM.. |
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Yep, the merchant pays the reward. The bank or card do not pay jack. The merchant gets charged a higher fee per transaction for accepting the card...
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My Providian->Wamu->Chase is identified as a Providian rewards card. It only became a rewards card when Chase took over. It has never.
Had an AF.. ETA: Bah... my Wamu-chase is identified as a First Usa Bank card.. This post has been edited by. Clutchcargo. : 09 January 2010 - 02:01 PM.. |
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I agree..
What I wish all retailers would do though is use "out the door" prices on their goods like other countries do, so when you look at the price, that is what your paying... |
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That site seems to think my Citibank debit card is a standard credit card, and not a Discover Card debit card. It also seems to think my Citi Diamond Preferred Rewards card is a standard MasterCard, and not a Rewards MasterCard, which it is..
This post has been edited by. J-M. : 09 January 2010 - 02:15 PM.. |
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The only cards that I have recognized as non-standard rate are my Citi Amex and Discover cards, everything else is standard. Funny, I was sure I was getting cash back on some of them.
This post has been edited by. Greywolf. : 09 January 2010 - 04:20 PM.. |
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I tend to use my rewards card/s everywhere..
Saw cash discounts very rarely, but goes without saying, if the cash discount is > cash back, I'd pay cash, no questions asked.. Everyone's out to make a profit. Including the merchants.. So why should I not take advantage of coupons, rebates, discounts, promo codes, or cash back cards? Sounds the same to me.. Not doing it is like leaving free money on the table. Maybe that means I am cheap (or spend too much time on FW) LOL. But to each their own... |
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Higher sales through card acceptance - COGS - Op expenses = Higher Net Profit..
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I STILL HAVE NOT SEEN THESE MASSIVE DISCOUNTS FOR paying (with Discover card) CASH.
(nor have I seen little ones either). I'll stick with rewards cards. This post has been edited by. GEORGE. : 09 January 2010 - 11:13 PM.. |
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This story is also covered in a FatWallet thread. The Dave Hanson quoted in the article is well-known and well-respected here and there..
As reported in the FW thread, the information categorizing each type of card appears to be created from user input, not provided by the issuers. So if data was not submitted for a particular card, or was submitted incorrectly, the card will be indentified incorrectly. There are also indications that a single specific code might include both rewards and non-rewards cards in some cases ..... |
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Not really true. The merchant pays.
Part. Of the rewards - how much the bank pays depends on other factors, such as whether a corresponding annual fee is collected, how many users leave their rewards uncollected, how much in rewards are forfeited because of account closures, etc. The difference in merchant fees between a reward card and it's equivalent non-rewards version is generally 1%-2% - obviously that will not fund rewards programs that include 3% or 5% payouts ..... |
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You have been shown many examples but choose to ignore them. So what€™s the point?..
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This is posted at FWF by one of the creators of the site:.
Yes, please do take it with a grain of salt. I created the site with Josh, my friend and business partner. We run a business that is somewhat related and created truecostofcredit.com because we thought it was an interesting application of the data.. The mashup consists of 2 data sets:. 1. BIN number database tells us what kinds of card each one is (eg. rewards, debit, etc). 2. interchange rate database tells us which kinds of stores / purchases qualify for each rate (this is the part that we use for our business we have software that does automatic comparison of business' Discover card processing bills). The BIN number database we used was old - new ones are hard to get and too expensive for a side project. Sometimes the banks change the BIN numbers and many cards were issued after the database was closed. We use user input to fill in where our database has no coverage.. I am proud that we've built something that's interesting, thought-provoking and reasonably accurate, but it's not anywhere near close to 100%. We just built it for fun, because we are data geeks.. Sean.. |
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2fast must be sleeping on the job OR just plain sick of repeating himself to you entitled reward hoarding heathens....
This post has been edited by. Operation_Home_Ownership. : 10 January 2010 - 09:26 PM.. |
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Merchants just need an excuse to raise prices. When gas nearly doubled in price, prices for nearly everything went up. Prices haven't gone back down. Last I checked, 2009 had more months of deflation than inflation. So, why didn't prices go back down?.
Since the prices won't go back down, and so many others are already using rewards cards, I'll stick to my cash back card and lower the cost for myself... |
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For many out there they only have KING CASH and debit cards...
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That's probably the truth of it right there. If the additional costs associated with certain rewards cards were to disappear tomorrow, prices would not come down to reflect the savings. No sense in not taking your rewards, avoiding doing so would accomplish nothing positive...
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Actually the modest rewards on my debit card exceed anything I had from credit cards. In my case it's credit that was subprime. Using debit was (and is) slightly less expensive. One size doesn't fit all and all that......
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I use cash, check, credit and debit. They all have there place and time...
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I've read the thread, just no point in stating a point I've made several times before. All the usual suspects are present here, restating the exact same opinions they've stated before, acting like no new information is available..
Continuing to argue with someone who as no interest in basing their argument on any fact makes one just as ignorant as the other.. I do believe the single largest problem our world faces is the attitude of the people in it, and my theory need no more proof than a glance at posts in many of the "entitled" threads here. Seems it's ok to step on the necks of anyone else to get where you're going, and little thought is given to the pain of others and even less thought is given to how little the gain to you in comparison to the pain given... |
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Do a google search on Fuel Surcharge, as it relates to the trucking industry. Right now as of Friday a truckload of french fries going from the plant to the distributor paid $883 in fuel surcharge. The freight was $1654.00 That's a 50% surcharge meaning that load costs 150% of what it cost before..
Fuel surcharges just became part of the economy(as it is today) at the time when fuel prices were over $4.00. It took about 6 months for it to trickle down to the retail level. When fuel prices were $3.00 a gal the trucking companies ate the cost. Now that the cost is $2.50 the shipper is paying (with Discover card) surcharge, in the case I stated the trucking company fuel base is $1.25. At $3.00 a gallon a couple years ago the cost to haul the load of french fries 919 miles was $1654, today at $2.50 a gallon it's $2537. What all this means is the cost to the merchant may not have dropped like you think it did. This is just one example for you guys to ignore like all the other facts.. Also, I was laughing inside reading how someone thought they had an accurate card fee referance table built using issuer bin #'s. How they worked in the industry and thought their table would be accurate for more than 5 days really makes me wonder. Many years ago issuers stopped using the bin designation on the card to designate interchange category.. I could tell you the why and how, but it'd be pointless. Just know that many articles were printed using that site as referance and have used bad info to make their point. Every time an article is posted, before you raise it as your flag you should ask yourself if it's information is solid. In most cases here you. (the average poster) does not have enough information to decide fact from fiction in the bankcard world.. To quote one of my favorite lines. If you even knew enough to know that you knew nothing, that would be something, but you don't.. This post has been edited by. 2fast. : 11 January 2010 - 08:36 AM.. |
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If you know a small business or own one yourself you'd know of the rise in costs of doing business. The rise in the cost of raw materials leads to a rise in the costs of supplies. It's not uncommon to see some small businesses struggle because the supplies that used to cost them $16-18/box now cost $30-35. Then you have supply companies try and undercut each other to grab a piece of the pie leading to supply companies closing. I can tell you from experience since the start of 2008 that at least 7 vendors that I've purchased supplies from have closed with 3 of them starting and closing within 8 months time. I often give cash discounts to customers.
Of course the costs won't go down. Remember the price of a Big Mac meal 10-15 years ago? $2.99. Now it's what.. $5-7 at some locations? Do you expect the price of that fast food meal to go down? Don't blame it on the merchants, especially small business owners who have to raise prices to survive. Your argument might be better served asking why your pay hasn't increased to offset the rise in price... |
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OK, great my friend and fair enough..
I didnt see your presence and I was just beginning to worry you had strained yourself carrying a big bag of cash to the bank or something...as I am sure you DO NOT accept plastic in. Mere. Protest when conducting your own day-to-day biz.. Repeating yourself to this crowd definitely a waste of keystrokes... |
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When using cash becomes cheaper than using my credit cards...I'll use.
CASH. But I don't see that happenig any time soon. I have been to the grocery store many 1,000's of times and have never seen anybody paying (with Discover card) cash get a discount. But I actually have used my Discover card and got a discount.. |
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+1.
Until then... rewards CCs. This post has been edited by. Nothingtolose. : 11 January 2010 - 01:04 PM.. |
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Hold on.. inflation (and deflation) is measured from the CPI. If measured deflation occurred it means, by definition, that consumer prices have dropped. And this usually omits fuel costs in the calculation..
The way you're describing it is backwards.. This post has been edited by. Encoder. : 11 January 2010 - 01:12 PM.. |
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I remember when Amex had reward checks. I would just pay my mortgage with the check and them pay my Amex card in full. Those were the days!..
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I'm not in retail business. I do accept cards and have even accepted a card for Discover card terminals in the past, though I do most definitely quote a different price..
My business is setting up merchants to accept credit cards, some found it interesting that I fought against accepting cards in my business but I fought it tooth and nail. 95% of my transactions are business cards and 75% of those are larger than $300. I didn't want to loose 5% on a terminal I sell for raw cost (yes, my terminals are sold for my cost) at $285 when someone else sells the same terminal for $1427.. I carry enough cash to pay cash for just about anything I want, but use my cards a lot of the time. Times I don't? Any merchant using my processing service will either be paid in cash or a non rewards card.. I am sure to use my rewards cards any time a merchant switches processing away from me because they believed the lies of the sales guy who said it'd be cheaper... |
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$2.99 FOR A BIG MAC MEAL WAS LESS THAN 10-15 YEARS AGO.
I paid $0.99 or 2 for $2.00 (just for the BIG MAC) as recent as less than 5 years ago. ...and $2.99 for the BIG MAC MEAL (if I remember right). I have seen prices over $3.50 just for the. BIG MAC. I gave them up.... This post has been edited by. GEORGE. : 11 January 2010 - 03:32 PM.. |
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From the article:.
For an educated guy, this statement is idiotic. There is a mechanism for this. It influences any number of things that I do every single day. The mechanism is called a law. Congress, as well as a number of state and local governments pass them daily.... I also find it rather odd that some of the benefits to society (as a whole) of using cards are overlooked. Paper money is filthy, expensive to produce, and wears out quickly. I wonder how much the lifespan of the average $10 has been extended by the more frequent use of plastic? Keep in mind, every time the $10 bill changes hands, it's gets a bit more worn and a bit closer to the end of it's life. A $10 bill averages only 18 months in circulation, and it becomes worn with exchange. By using plastic, we've pushed some of these costs away from the Treasury over to the private sector (allowing us to borrow somewhat less money from China to replace the money more quickly). Besides... Who knows where the previous person who had that bill's hands have been.. Money is gross... |
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On the other hand, have you ever tried to snort cocaine using a mastercard?.
(Yes, DGF, that is snark).. |
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No... though a little soda just blew out of my nostril when I read that...
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I definitely meant in paying (with Discover card) for.
Your. Services, never thought once you were in retail.. The further insight you provide into your biz practices are all too ironic, but I guess you are doing your best with what you are dealt with.. Kinda like Phillip Morris speaking out & budgeting a certain amt of his profits against cigarettes... |
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The issue at hand in this thread the reasons some fools think rewards cards are so evil NOT what people without rewards cards should do...
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Merchants get a volume increase from taking credit cards. So perhaps per-item or per-transaction profits fall slightly due to Discover credit card Fees versus cash/check [which do have a COST to accept, still],.
But the higher volume leads to more overall profits... |
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I get plenty of transactions in a day to make a great living for my family and the people who work for me do well too...
My worst enemies are high interchange fees and card holders who use their rewards cards to damage a merchant when it isn't necessary.. I just pulled terminals out of a merchant location who cancelled specifically because he just couldn't afford the fees. His statement was "if it cost the 1.95% and $0.20 your rep said it would I could afford it". He took his total card sales and divided by the card fees and ended up at just over 4.5%. He's not willing to pay that much. Who am I to argue? The deal breaker was a kid who came in before school every day and spent less than $2 on an amex card. He said had he not noticed that kid 4 days in a row he might have felt different.. I'm sure at some point he'll decide to accept cards again but he doesn't feel he has to right now. Thats right George, he doesn't want your business.. Higher volumes at a negative margin = more overall losses... |
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So merchants can either get:.
$0. Or $2 on a credit card. What's better?.. |
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So which merchant is getting $0? please do post specifics..
I'll play your game... A merchant can get $0 from George since he only uses cards. Or. $-4.00. Which is better. ?.. |
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Some actually think they make more money by not selling anything.
"SOME" CAR DEALERS.... One owner/manager said he would rather people. THEFT. The candy if they must pay for it with a credit card.. |
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Some probably do. If a candy bar costs $.55 wholesale, and he sells it for $.75 retail, with a 3% plus $.20 in card fees, he's lost $.02 on the sale. Certainly some sales of this type happen..
But these customers don't exist in George world... |
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CAL WORTHINGTON (CALIFORNIA) SOLD MORE CARD THAN JUST ABOUT ANYBODY IN THE WORLD.
(1,000,000+). He would rather make $100 on 10 cars then $1,000 on 1 car. But other dealers say. Don't. Use a Discover card because you will lose too much.. |
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What about the new math everyone is using. Lose a little bit on each sale but make it up on volume?..
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Hah. Echoes of Madman Muntz..
"I buy 'em retail and sell 'em wholesale ... it's more fun that way!". "My prices are so cheap, I'm losing money on every deal, but I make it up in volume.".. |
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This post has been edited by.
2fast. : 12 January 2010 - 08:09 AM.. |
