Subject:
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Re: X.com... good idea, good execution?
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Newsgroups:
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lugnet.market.theory
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Date:
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Wed, 16 Feb 2000 19:48:44 GMT
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Reply-To:
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rsanders@svic&nomorespam&.net
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Viewed:
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791 times
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Oddly, I have witnessed a little side action on this 'cash advance'
thing. At the local grocer (small town place), people can pay with
credit, debit or whatever electronic else they take. When someone pays
with a 'debit' card, the clerk usually asks if they want cash back. I
guess this is the same as overwriting a check to the merchant to get
cash back. They process the transaction just like any 'grocery only'
debit, and no one gets extra-charged.
Ray
Will Middelaer wrote:
>
> In lugnet.market.theory, Mike Stanley writes:
> > I don't really see what difference it makes if the deposits are
> > treated as cash advances or purchases, unless you're only talking
> > about using actual credit cards for that.
>
> The difference is that with most credit cards, when you get a cash advance (I
> have never done this, but the little lawyer in me actually reads those
> contracts that they send out with new cards.) the following happens with most
> cards:
>
> 1) The credit card company charges the card holder a fee of two percent of the
> transaction amount, generally with a $10 minimum, and;
>
> 2) As mentioned before, the interest clock starts ticking right away, and;
>
> 3) The cash advance does not count towards any bonus point, frequent flyer
> mileage, or other reward system that the card might have.
>
> The card issuers do this for a few reasons, including:
>
> 1) They make a lot of money doing this type of transaction, and;
>
> 2) They do not get their typical cut off of the merchant's side of the
> transaction.
>
> Like you said, though, this point is generally moot with check cards, except
> for at banks like mine where they hit you for $0.25 for each debit, but if you
> set the transaction up as a charge, there is no fee.
>
> > Then again, I know some people do use actual credit cards for
> > purchases throughout the month, then pay off the balance each month.
>
> My wife and I make all of our purchase over about $10.00 using a frequent
> flyer credit card, if the merchant takes CC's. We also pay it off every
> month, so our only cost for the card is the annual fee. You would (or maybe
> not ;-) ) be surprised how fast those miles can add up.
>
> Will
--
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Message is in Reply To:
 | | Re: X.com... good idea, good execution?
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| (...) The difference is that with most credit cards, when you get a cash advance (I have never done this, but the little lawyer in me actually reads those contracts that they send out with new cards.) the following happens with most cards: 1) The (...) (25 years ago, 11-Feb-00, to lugnet.market.theory)
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