Applying credit card for cash back reward

OneEyedDiva said:
Yes but if the charge is $25 and that is what is paid to the merchant, the vendor fees are reflected in that price already. My point is we're not paying the extra 20% on top of that by not paying in full.
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oh , i agree but when when chooses not to take part in point rebates they are in effect paying more then those who are
 

mathjak107 said:
actually you do pay more as the vendor credit card fees are reflected in the prices charged .
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How many vendors offer a lower price if you use cash? less than 1%? But for all the rest you will still pay the same price in cash as you would if you used a credit card. While that benefits the vendor, you get nothing out of it, except a certain amount of inconvenience. I don't mind the hidden costs. The convenience of a card is worth it to me. If there were no cash back rewards, I would still use a card exclusively. Cash back is just a better deal than no cash back.
 
JustDave said:
How many vendors offer a lower price if you use cash? less than 1%? But for all the rest you will still pay the same price in cash as you would if you used a credit card. While that benefits the vendor, you get nothing out of it, except a certain amount of inconvenience. I don't mind the hidden costs. The convenience of a card is worth it to me. If there were no cash back rewards, I would still use a card exclusively. Cash back is just a better deal than no cash back.
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more and more places in new york are offering a cash discount ….they have been adding a surcharge of 3-4% when credit cards are used trying to bolster profits but they are finding out that is not legal .

they can raise the prices on the menu and then offer a discount for cash but they can’t add a surcharge at the register.

they can even have two prices on the menu , one for cash , one for charge like gas stations .

but although they try to add a surcharge they can’t do it legally so their only choice is to offer cash discounts from the menu prices

this has been going on here since covid although the laws allowing vendors to charge more for credit cards was passed in 2019

https://nypost.com/2022/04/26/credit-card-fees-at-trendy-restaurants-are-new-on-menus/
 

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mathjak107 said:
more and more places in new york are offering a cash discount ….they have been adding a surcharge of 3-4% when credit cards are used trying to bolster profits but they are finding out that is not legal .

they can raise the prices on the menu and then offer a discount for cash but they can’t add a surcharge at the register.

they can even have two prices on the menu , one for cash , one for charge like gas stations .

but although they try to add a surcharge they can’t do it legally so their only choice is to offer cash discounts from the menu prices

this has been going on here since covid
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That's fine to give people that choice, but I'll still use a card. It's worth it to me, although I've never seen that in a restaurant myself, but I haven't been to a restaurant since Covid started. It's not that I'm worried about Covid right now. I just got out of the habit, and eating out doesn't appeal to me anymore.
 
we tend to bring in far more then eat out ….we are either on the go daily with our photography or in the studio drumming so we tend to bring in a few times a week from restaurants or take out places .

we have so many great ones.

remember not all states or cities allow surcharges on credit cards to be charged in any fashion …we only can do this here in nyc since 2019
 
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mathjak107 said:
don’t need data .it is common sense …

if one is paying typical credit card interest in the 20% plus range and carrying a balance and they get nothing back in cash back that group would be the most profitable.

care to prove otherwise ?
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I take it you cannot back that up.
 
harvard business review says the most profitable group are those with less then stellar credit since they carry balances , pay higher rates and the less then stellar credit cards have little to no perks

“Although credit-card holders with low credit ratings default more often than the rest of the population, the interest and fees they pay make them far more profitable for banks than any other groups of credit-card customers, according to research reported in The New York Times. Even during the financial crisis, when banks were hemorrhaging money on subprime mortgages, subprime credit cards were a major source of profits”
 
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mathjak107 said:
we tend to bring in a few times a week from restaurants or take out places .
we have so many great ones.
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I'll bet you do. My favorite restaurants went out of business during Covid, and they were not great restaurants either. Most of the big chain outfits survived. Mostly around hrere that's just Applebee's and Pizza Hut.
 
JustDave said:
I'll bet you do. My favorite restaurants went out of business during Covid, and they were not great restaurants either. Most of the big chain outfits survived. Mostly around hrere that's just Applebee's and Pizza Hut.
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if you wanted. to eat out every day you could go 22 years eating somewhere different. every day and never repeat in nyc

we have 270 restaurants just in our door dash delivery area where we live in queens
 
rbtvgo I'm going to quote your example.

Quote

"I find all the comments interesting and realistic. As I said I have utilized all the options as I raised my family and made my way thru life. What I was trying to say is if you borrow money then you pay for it. A 25.00 shirt on credit will cost you more then 25.00 when you pay it off unless you paid cash."

$25.00 as an example isn't really represented in monthly credit card spending. Ours is typically $1,500.00 a month. Use of a cash back credit card is an advantage IF you pay the balance & pay no interest. You get cash back plus interest on the money you have let it sit for 30 days to the close of the billing cycle collecting interest. The ability to pay online at the end of the day when interest is posted makes it possible to get that advantage. The date stays within the billing cycle time frame.

But for grins a giggles lets use your $25.00. The shirt is normally $40.00 but you get it on sale for $25.00. You get a $15.00 savings on the sale you get cash back on the purchase & interest on the transaction. You get the $15.00 sale savings & lose the rest.

But the key is paying in full no matter the total.
 
especially at most credit card interest rates …interest payments account for almost 50% of all credit card company profits .

29% is from the vendor side .

the rest is network fees they get , late fees and cash advance fees
 
oldmontana said:
I cannot prove it’s false because I do not know. You are the one that made the statement. It's up to you to back it up. I would like to know.
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it’s simple math .

almost 50% of all credit card company profit comes from interest paid ..

the most profit will be from the customer who will be paying a high interest rate yet takes nothing back in points .

higher use premium card customers do not pay a lot in interest , in fact the majority of premium users pay none , although they do generate vendor fees paid … but they also take a lot back in perks

what is there to disprove, interest is the biggest component of profit
 
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mathjak107 said:
it’s simple math .

almost 50% of all credit card company profit comes from interest paid ..

the most profit will be from the customer who will be paying a high interest rate yet takes nothing back in points .

higher use premium card customers do not pay a lot in interest , in fact the majority of premium users pay none , although they do generate vendor fees paid … but they also take a lot back in perks

what is there to disprove, interest is the biggest component of profit
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you are so correct

Several members here have stated that credit card companies make their money off of people that pay interest on their cards and that is true, also they make money off of people who default on their given due date that you must by pay to keep your % for the given months they give you

I am not the customer they really want as others like me pay on time and they make no interest off of us. I certainly don't feel bad about accepting their sign on bonus or their rewards as they offer it to us to accept or not accept it and they hope we default on our due date or whatever rules they set so they can make money off of us.

When you have any CC you must have good money habits or you will get in over your head and wind up in financial trouble, I know my limits and I play by their rules and it works for us!
 
rbtvgo said:
I am going to make a statement that does not require a reply. Most people pay off there credit card every month?? okay! Most people get 35 miles a gallon in their cars?? okay! Most people have low electric bills and most people spent less to buy their car then the dealers price?? okay! Most people pay for their children's college tuition yet most kids are stuck with a huge bill. What am I missing here between truth and fiction?
Cash back has it's merits but it is not promoted to save you money as much as it makes them money. Case in point, airline miles. you have these points yet they don't apply., surprisingly. with where you would like to go. Deals in that area are not available but you could go to "no one can pronounce the name" for next to nothing.
These products serve the credit card companies.
just my opinion.
rbtvgo
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Your statement may not require a reply, but I'll give one anyway.

I DO pay my CC bills in full every month.
My hybrid DOES get 35 mpg average. DH's diesel gets 10-12 mpg when hauling the RV and his Silverado pickup gets about 18 mpg.
My electric bills are about average.
We paid approx dealer price for our last (two year used) car - my hybrid. Just before Covid shutdown.
We DID indeed pay our children's college costs (they stayed home and went to state universities) up through their bachelor's. Advanced degrees were on them. Only one wound up with any student debt - she went to Columbia University in NY for her Master's, but her salary bump for having that degree more than paid for her loan.

Many on this forum do exactly what we say we do.
 
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mathjak107 said:
the chase freedom when its the quarterly special and the citi cash card all the time as well as we have the instacart card and get 5% with them.

when chase does it i get 5% then transfer the points to my chase sapphire reserve where it gets a 50% boost to 7-1/2%
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Good to know, thanks.
I don't use Instacart, but go to the grocery store with great regularity!
 
StarSong said:
What card gives you 5% on groceries?
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Like Mathjak, I use the Chase Freedom card. Usually when it's 5% bonus on groceries ends, at some point Discover has 5% back on groceries. Then at least one quarter a year, Discover has 5% back at Walmart, so I will get most of my groceries from there that quarter. In essence I wind up with 5% cash back on groceries 9 months out of the year.
 
StarSong said:
Your statement may not require a reply, but I'll give one anyway.

I DO pay my CC bills in full every month.
My hybrid DOES get 35 mpg average. DH's diesel gets 10-12 mpg when hauling the RV and his Silverado pickup gets about 18 mpg.
My electric bills are about average.
We paid approx dealer price for our last (two year used) car - my hybrid. Just before Covid shutdown.
We DID indeed pay our children's college costs (they stayed home and went to state universities) up through their bachelor's. Advanced degrees were on them. Only one wound up with any student debt - she went to Columbia University in NY for her Master's, but her salary bump for having that degree more than paid for her loan.

Many on this forum do exactly what we say we do.
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your the exception ....not the rule. Visa isn't rich because we all do what you did. Your smart and you did the right thing. A lot of work but you saved money. Most people do not. again....that's why Visa is rich.
Just my opinion
rbtvgo
 
rbtvgo said:
your the exception ....not the rule. Visa isn't rich because we all do what you did. Your smart and you did the right thing. A lot of work but you saved money. Most people do not. again....that's why Visa is rich.
Just my opinion
rbtvgo
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less then half of all credit card users carry a balance so saying most is not correct
 

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