A couple of weeks ago someone informed me that all the rewards from credit cards are funded by the retailer. I said, no way, they said yes. I could barely comprehend this, surely these credit card companies charge enough interest and fees without robbing Peter to pay Paul for promotions?
Today it was confirmed. They were right. I can’t help feeling violated as if someone snuck into my bedroom and went through my panty drawer. Not that I trusted these huge conglomerates, but I didn’t know they were that devious. Yes, if you have a card that offers a perk, every time you shop, the retailer pays the price. How sleazy is that? On my Merchant Visa account I have to pay 1.99% of the sale for your rewards plan, over and above the rate of 1.47% I was told they charge. Plus there are several other fees that add to this until I’m paying just shy of 5% of the total sale, tax included, for every purchase that goes through my till for Visa or Mastercard.
I hear friends tell me of all the benefits they receive from collecting points and I think wow, I should have a card like that! Free groceries, air fare and holidays! It all sounds fantastic until you know that the small business person, the little mom and pop shop is paying for it. Yes, large corporations do as well but they make a whole lot more money than a small craft business and might better bite the bullet on it.
Today I thoroughly scrutinized my credit card merchant statement and sure they tell you upfront they charge 1.47 every VISA transaction, it’s there on the first line in black and white to see. But when look further there are all kinds of percentage fees added on lower down the page and the total percent taken off? Almost 5% per transaction!!! I’m gob smacked! And what can I do about it? ABSOLUTELY FRIGGIN NOTHING! They have us by the short and curlies! Ouch!
Of course I could refuse to accept credit cards but I’d be closed in a week. It would hurt me more than the credit card company that would view me as a mere drop in their bucket.
And coincidentally, I received an unsolicited call the other day, a new card offering all the perks to replace our existing MasterCard. 2 yearly First Class Lounge tickets for the airport in case your flight is delayed so you can wait in comfort with free coffee and comfy chairs, travel insurance, air miles with opportunities to get double the amount for certain things. There was an annual fee of $149.00 and $1000.00 free Airmiles if you charge $3000.00 to the card within three months.
They really want you to be on the faster roller coast of debt. On and on he went, accentuating the positives, the perks. Finally, at the end of the pitch we were about to say, make it so, when I asked about the interest rate, something conveniently omitted. It was 19.9%. His voice lowered as he quoted the rate as if he didn’t want me to hear it. I wonder if they are trained to do this? Apparently the credit card company wanted us off our existing card that was locked in at a lower rate of 12.99% and tried to woo us into higher interest with perks. Really? Is the money not trickling in fast enough?
And what is up with an annual fee? They should be paying us to use their #&(%!@* credit cards. They make billions off us! I don’t use a credit card for my personal life. I use debit or cash, whatever is in my pocket when I need to pay for something. I like these options; only spending what I can afford. A long time ago I got annoyed seeing the credit card bill come in; when I wrote the cheque, it felt like I was paying for the item twice so I opted not to have one. I only use a credit card for business for ordering supplies, for the convenience factor and quicker service.
So I’m disillusioned. In a world where 70 (seventy),( that’s seven zero), people combined have more wealth than half the world’s population (3 1/5 billion plus) the little guy is screwed up the wazoo by fees, interest and surcharges as they struggle to get by, feed their families and keep their head above water.
My rant for the day!
Today it was confirmed. They were right. I can’t help feeling violated as if someone snuck into my bedroom and went through my panty drawer. Not that I trusted these huge conglomerates, but I didn’t know they were that devious. Yes, if you have a card that offers a perk, every time you shop, the retailer pays the price. How sleazy is that? On my Merchant Visa account I have to pay 1.99% of the sale for your rewards plan, over and above the rate of 1.47% I was told they charge. Plus there are several other fees that add to this until I’m paying just shy of 5% of the total sale, tax included, for every purchase that goes through my till for Visa or Mastercard.
I hear friends tell me of all the benefits they receive from collecting points and I think wow, I should have a card like that! Free groceries, air fare and holidays! It all sounds fantastic until you know that the small business person, the little mom and pop shop is paying for it. Yes, large corporations do as well but they make a whole lot more money than a small craft business and might better bite the bullet on it.
Today I thoroughly scrutinized my credit card merchant statement and sure they tell you upfront they charge 1.47 every VISA transaction, it’s there on the first line in black and white to see. But when look further there are all kinds of percentage fees added on lower down the page and the total percent taken off? Almost 5% per transaction!!! I’m gob smacked! And what can I do about it? ABSOLUTELY FRIGGIN NOTHING! They have us by the short and curlies! Ouch!
Of course I could refuse to accept credit cards but I’d be closed in a week. It would hurt me more than the credit card company that would view me as a mere drop in their bucket.
And coincidentally, I received an unsolicited call the other day, a new card offering all the perks to replace our existing MasterCard. 2 yearly First Class Lounge tickets for the airport in case your flight is delayed so you can wait in comfort with free coffee and comfy chairs, travel insurance, air miles with opportunities to get double the amount for certain things. There was an annual fee of $149.00 and $1000.00 free Airmiles if you charge $3000.00 to the card within three months.
They really want you to be on the faster roller coast of debt. On and on he went, accentuating the positives, the perks. Finally, at the end of the pitch we were about to say, make it so, when I asked about the interest rate, something conveniently omitted. It was 19.9%. His voice lowered as he quoted the rate as if he didn’t want me to hear it. I wonder if they are trained to do this? Apparently the credit card company wanted us off our existing card that was locked in at a lower rate of 12.99% and tried to woo us into higher interest with perks. Really? Is the money not trickling in fast enough?
And what is up with an annual fee? They should be paying us to use their #&(%!@* credit cards. They make billions off us! I don’t use a credit card for my personal life. I use debit or cash, whatever is in my pocket when I need to pay for something. I like these options; only spending what I can afford. A long time ago I got annoyed seeing the credit card bill come in; when I wrote the cheque, it felt like I was paying for the item twice so I opted not to have one. I only use a credit card for business for ordering supplies, for the convenience factor and quicker service.
So I’m disillusioned. In a world where 70 (seventy),( that’s seven zero), people combined have more wealth than half the world’s population (3 1/5 billion plus) the little guy is screwed up the wazoo by fees, interest and surcharges as they struggle to get by, feed their families and keep their head above water.
My rant for the day!
RSS Feed
