Text 11859, 50 rader
Skriven 2010-11-10 11:10:00 av Robert Bashe (2:2448/44)
  Kommentar till text 11840 av Dale Shipp (1:261/1466.0)
Ärende: Credit card vs. cash
============================
Dale Shipp wrote to Michiel Van Der Vlist on Tuesday November 09 2010 at 23:42:

MVDV>> o It is far too easy to spend more than you can afford. With cash
MVDV>> you can see the bottom of the wallet.

DS> Never happens with me -- but it is a problem for some people.

Indeed - but at least in Germany, such people don't get credit cards. They
check your credit rating here before they issue a card.

MVDV>> o Credit cards are too vulnerable for fraud.

DS> Not really. If a purchase shows up on my statement that I did not
DS> make, I cancel it.

Note I already mentioned the different legal systems. This (cancelling) is not
so easy in Germany as in the USA (actually, I'm not sure it's even possible).

MVDV>> o It is too expensive becase of the hidden cost.

DS> There is no hidden cost to me.

Of course there is, even if you may not notice it since it's so small for the
individual. But everyone pays for it.

DS> In fact, I get a benefit. For example, today I bought my gas using an
DS> American Express card. On my $30 bill for gas, AMEX will rebate me
DS> $0.90 (3%).

And how much do you pay annually for the Amex card? Or are they meanwhile free?

DS> At the place where I buy my gas, AMEX is the only credit they accept.
DS> They do not accept cash.

So you get 3% and Amex gets 6% of the purchase - and the gas station relies on
the "better clientele" who presumably spend more (who uses Amex nowadays, when
Visa and Master are free?).

DS> When I buy groceries or anything else using my MasterCard, I get one
DS> airline mile per dollar spent -- worth between $0.01 and $0.03, i.e.
DS> 1% to 3%. If I use cash for those purchases, I get nothing back.

Makes you wonder how much the credit card companies are earning to give you
such benefits... but of course, everything is added to the price of the goods,
so who cares?

Cheers, Bob

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