Credit cards

[Spartans9312]

New Study Shows LMI Households Rely on Credit Card Rewards - Electronic Payments Coalition

The Electronic Payments Coalition released a new report examining how American consumers, including lower-income consumers, utilize reward credit cards and how proposals restricting card issuers’ ability to offer reward credit cards would adversely impact cardholders of all incomes.

electronicpaymentscoalition.org

The industry needs fixed. This article is trash.

Negative for small businesses.

 

[OpenWheels]

New Study Shows LMI Households Rely on Credit Card Rewards - Electronic Payments Coalition

The Electronic Payments Coalition released a new report examining how American consumers, including lower-income consumers, utilize reward credit cards and how proposals restricting card issuers’ ability to offer reward credit cards would adversely impact cardholders of all incomes.

electronicpaymentscoalition.org

The industry needs fixed. This article is trash.

Negative for small businesses.

Let people choose the cards of their own volition. If there's no good product for them, one will come along.

Don't charge the rest of us extra for your favorite restrictions.

It costs money to run the government and enforce additional laws, too. No need to make it more expensive for no benefit. In fact negative benefits.

 

[TheOriginalHappyGoat]

New Study Shows LMI Households Rely on Credit Card Rewards - Electronic Payments Coalition

The Electronic Payments Coalition released a new report examining how American consumers, including lower-income consumers, utilize reward credit cards and how proposals restricting card issuers’ ability to offer reward credit cards would adversely impact cardholders of all incomes.

electronicpaymentscoalition.org

The industry needs fixed. This article is trash.

Negative for small businesses.

LOL negative for everyone. That's some of the worst written industry propaganda I've seen in a while.

 

[Spartans9312]

Let people choose the cards of their own volition. If there's no good product for them, one will come along.

Don't charge the rest of us extra for your favorite restrictions.

It costs money to run the government and enforce additional laws, too. No need to make it more expensive for no benefit. In fact negative benefits.

Swipe Fees

Credit and debit card swipe fees cost retailers and their customers more than $170 billion each year.

nrf.com

Retailers’ cost:
1. Wages
2. “Swipe fees”

Stunning Visa and Mastercard Profit Margins Prove Credit Card Market is Broken

Soaring profits reported by Visa and Mastercard this week are further evidence the credit card market is broken and not competitive, MPC said.

merchantspaymentscoalition.com

Visa and Mastercard…net profit margins about 50%

 

[Mgdriver]

Wife just got a statement from Penny's on a card she hasn't used
in over a year.
31 percent interest.

 

[Spartans9312]

DURBIN, MARSHALL ANNOUNCE HAWLEY, REED AS NEW COSPONSORS, GROWING SUPPORT FOR CREDIT CARD COMPTITION ACT | U.S. Senator Dick Durbin of Illinois

The Official U.S. Senate website of Dick Durbin

www.durbin.senate.gov

Market competition vs Europe model



Europe caps swipe fees at 0.2%-0.3%

 

[UncleMark]

Europe caps swipe fees at 0.2%-0.3%

Fvcking communists

 

[UncleMark]

Visa and Mastercard…net profit margins about 50%

Fvcking money changers

 

[mcmurtry66]

Fvcking money changers

I have friends who usedxto buy that shit. 3 million bucks of bad debt for a couple hundred grand. Keep what you collect

 

[Spartans9312]

Fvcking communists

Financial industry has spent 50+ million lobbying against the bill.

Protect Your Points - The Points Guy

Proposed legislation in the U.S. House and Senate could devastate the future of credit card points including cash back and travel rewards, while putting your financial security at risk.

thepointsguy.com

Framing consumers as victims

Hands Off My Rewards

handsoffmyrewards.com

Electronic Payments Coalition (Sponsored), Author at Breitbart

Electronic Payments Coalition (Sponsored), Author at Breitbart

www.breitbart.com

They claim the bill will ban rewards programs

 

[Marvin the Martian]

Rewards cards charge the business more. The business passes that back to consumers. Someone is certainly getting screwed.

Had a coworker by everything needed for his home construction with a rewards card. When complete it was a $500,000 home in rural Bloomington. I don't know how much of that was materials. But everyone else shopping at those businesses paid just a little more on everything they bought.

I had a mechanic who specialized in foreign cars tell me how much those cards hurt him. Almost anyone with a BMW, Jag, Merc, would use one. Those bills wouldn't be small. My Mazda paid extra to cover them.

I don't know if laws are a great idea, but we are kidding ourselves if we don't think there are losers in this game. Even if I paid for my Mazda's brakes with a rewards card, I doubt I get back the extra I have to pay because a Merc needed a new transmission.

 

[OpenWheels]

So I guess the BMW mechanic should only take cash or checks. Since they hurt him.

Independent studies (not industry or trade groups on either 'side') on the effects of the ( 2010 ?) Durban bill pretty uniformly show a net economic harm, which had a disproportionate effect on the less affluent due to the way banks adjusted products and fees. Side effect benefited huge retailers more than the little guys, also due to changes in product offerings. Gee, nobody could have seen any of that coming.

So now you (metaphorical you) want to double down on "there oughta be another law!" to fix what you harmed us with the last round.

Cool. What could go wrong. Let's spend that money. We didn't need it elsewhere.

 

[TheOriginalHappyGoat]

We should just ban usury again. Shouldn't be allowed to make money off money.

 

[TomEric4756]

DURBIN, MARSHALL ANNOUNCE HAWLEY, REED AS NEW COSPONSORS, GROWING SUPPORT FOR CREDIT CARD COMPTITION ACT | U.S. Senator Dick Durbin of Illinois

The Official U.S. Senate website of Dick Durbin

www.durbin.senate.gov

Market competition vs Europe model



Europe caps swipe fees at 0.2%-0.3%

Swipe fees are like sales taxes… just not collected by the Government… Usurious interest rates and fees should be enough financial incentive to offer credit cards … charging more than the processing cost as a swipe fee needs to stop.

 

[BadWakeboarder]

Wife just got a statement from Penny's on a card she hasn't used
in over a year.
31 percent interest.

Penny’s? Does your wife have a Goddamned Time Machine?

 

[UncleMark]

Penny’s? Does your wife have a Goddamned Time Machine?

Dude drives a fvcking MG, FFS.

 

[Spartans9312]

From the report:

“Rewards are especially important to lower income consumers”

“Accounts earn and redeem rewards at similar rates to middle and upper-income accounts, so rewards have a greater impact on LMI household finances”

“The boost in income from rewards redeemed is three to four times larger than for upper-income cardholders. LMI cardholders also have a stronger preference for redeeming rewards for cash, indicating a greater reliance on rewards to offset everyday expenses, especially during times of inflation.”

This is true but irrelevant to the bill.

 

[TheOriginalHappyGoat]

From the report:

“Rewards are especially important to lower income consumers”

“Accounts earn and redeem rewards at similar rates to middle and upper-income accounts, so rewards have a greater impact on LMI household finances”

“The boost in income from rewards redeemed is three to four times larger than for upper-income cardholders. LMI cardholders also have a stronger preference for redeeming rewards for cash, indicating a greater reliance on rewards to offset everyday expenses, especially during times of inflation.”

This is true but irrelevant to the bill.

I still can't get over the fact they are hyping the income boosting effects of taking on debt.

 

[Mgdriver]

Dude drives a fvcking MG, FFS.

Gonna get in the MG with my wife and head to the Penneys in Valpo and put a bunch a stuff on her old credit card.
And I'll pay it all off before the 31 percent interest kicks in!
Damn--life is good!
And that old MG runs like a tit...

 

[UncleMark]

I still can't get over the fact they are hyping the income boosting effects of taking on debt.

Dave Ramsey would be shitting bricks if he read this thread.

 

[mcmurtry66]

We should just ban usury again. Shouldn't be allowed to make money off money.

State by state. So if memory serves the bank headquarters where the card is issued is subject to the usury laws of that state for the card

 

[Spartans9312]

I still can't get over the fact they are hyping the income boosting effects of taking on debt.

It’s all in the rewards, man.

They use an article from NFIB to support their paper. Which has nothing to do with the bill. Businesses can’t survive without accepting credit cards….no kidding.

Credit Card Competition Act of 2023 Key Vote Planned | NFIB

NFIB is planning a U.S. Senate Key Vote in support of the Credit Card Competition Act of 2023, which was planned to be offered as an amendment to a government funding bill in the Senate. The amendment would require more…

www.nfib.com

NFIB is a supporter of the bill.

Competitiveness | NFIB

Leveling the playing field against big businesses' anticompetitive practices.

www.nfib.com

Over 90% want the option to choose between multiple payment networks.

Durbin, Marshall Introduce Bipartisan Credit Card Competition Act | U.S. Senator Dick Durbin of Illinois

The Official U.S. Senate website of Dick Durbin

www.durbin.senate.gov

The fees “increasingly cut into the razor-thin profit margins of small businesses”

“You know you’re going to get screwed, the only question is how to get screwed the least”…talking about swipe fees

 

[TheOriginalHappyGoat]

It’s all in the rewards, man.

They use an article from NFIB to support their paper. Which has nothing to do with the bill. Businesses can’t survive without accepting credit cards….no kidding.

Credit Card Competition Act of 2023 Key Vote Planned | NFIB

NFIB is planning a U.S. Senate Key Vote in support of the Credit Card Competition Act of 2023, which was planned to be offered as an amendment to a government funding bill in the Senate. The amendment would require more…

www.nfib.com

NFIB is a supporter of the bill.

Competitiveness | NFIB

Leveling the playing field against big businesses' anticompetitive practices.

www.nfib.com

Over 90% want the option to choose between multiple payment networks.

Durbin, Marshall Introduce Bipartisan Credit Card Competition Act | U.S. Senator Dick Durbin of Illinois

The Official U.S. Senate website of Dick Durbin

www.durbin.senate.gov

The fees “increasingly cut into the razor-thin profit margins of small businesses”

“You know you’re going to get screwed, the only question is how to get screwed the least”…talking about swipe fees

A huge boost for restaurants was when they banned processing companies from not letting you give discounts to cash customers. I don't remember which law did that, but it helped. All my local Mexican joints charge a 10% surcharge if you use a card. Which I'm happy to pay, because I rarely carry cash, but I know it's the only way they make any profit on those Tuesday tacos.

 

[UncleMark]

I had a mechanic who specialized in foreign cars tell me how much those cards hurt him. Almost anyone with a BMW, Jag, Merc, would use one. Those bills wouldn't be small. My Mazda paid extra to cover them.

So I guess the BMW mechanic should only take cash or checks. Since they hurt him.

FWIW, several of the shops we deliver to have it posted up front that they will charge an extra 3% for bills paid with a credit card.

 

[UncleMark]

A huge boost for restaurants was when they banned processing companies from not letting you give discounts to cash customers. I don't remember which law did that, but it helped. All my local Mexican joints charge a 10% surcharge if you use a card. Which I'm happy to pay, because I rarely carry cash, but I know it's the only way they make any profit on those Tuesday tacos.

Not sure it's the same thing you're referring to, but back in the late 80s I was in the gas station business and AMACO started charging their dealers a % to process purchases made with their own gas cards. Dealers were prevented from charging a surcharge to card paying customers, but were allowed to do "Discount For Cash." Real PITA for the dealers and the gas jockeys pumping the gas or trying to collect from self service people. If you pumped in $10.00 and the DFC was 5%, you'd get $0.50 back in change from your $10 bill. If we were pumping the gas and you asked for $10 worth, we'd run the pump to $10.50.

 

[TheOriginalHappyGoat]

Not sure it's the same thing you're referring to, but back in the late 80s I was in the gas station business and AMACO started charging their dealers a % to process purchases made with their own gas cards. Dealers were prevented from charging a surcharge to card paying customers, but were allowed to do "Discount For Cash." Real PITA for the dealers and the gas jockeys pumping the gas or trying to collect from self service people. If you pumped in $10.00 and the DFC was 5%, you'd get $0.50 back in change from your $10 bill. If we were pumping the gas and you asked for $10 worth, we'd run the pump to $10.50.

Probably similar. For the longest time, every processing company had as part of its standard contract an agreement from the retailer that they would charge the same for cash or card purchases. Since everyone required the same agreement, there was no way around it. Sometime in the past 10-15 years or so, Congress passed a law that ended that.

 

[Marvin the Martian]

FWIW, several of the shops we deliver to have it posted up front that they will charge an extra 3% for bills paid with a credit card.

That covers normal credit cards, rewards cards charge more. That is the issue.

 

[UncleMark]

Probably similar. For the longest time, every processing company had as part of its standard contract an agreement from the retailer that they would charge the same for cash or card purchases. Since everyone required the same agreement, there was no way around it. Sometime in the past 10-15 years or so, Congress passed a law that ended that.

In this case, it was AMACO charging dealers for processing AMACO cards. For Mastercard or Visa, the dealers were on their own, usually running those through their banks. This was all before electronic processing; you used the slider machine that produced carbons of the CC imprint, and those carbons went into the bank deposit bag.