Making money with credit card

[buckeyefarmer]

If you purchase gas at some stations, you are paying a higher price than cash sale. So, you would then be charged to use your CC.

I never use gas stations that do that.

 

[Torvy]

In some states that practice is illegal.

 

[4570Man]

In some states that practice is illegal.

It’s illegal to charge a credit card fee but it’s perfectly legal to give a cash discount.

 

[Torvy]

It’s illegal to charge a credit card fee but it’s perfectly legal to give a cash discount.

Truth, but then you are not being charged more for credit. You are being charged less for cash. It may be semantics, but a huge difference legally.

Buckeyefarmer's point is still important. Those of us who use credit to our advantage don't patronize stores who pass those fees along regardless of the semantics. Sure, the other stores bake the charges into their prices, but those are equally spread to all customers, cash or credit. We are still coming out ahead.

 

[4570Man]

Truth, but then you are not being charged more for credit. You are being charged less for cash. It may be semantics, but a huge difference legally.

Buckeyefarmer's point is still important. Those of us who use credit to our advantage don't patronize stores who pass those fees along regardless of the semantics. Sure, the other stores bake the charges into their prices, but those are equally spread to all customers, cash or credit. We are still coming out ahead.

Every store is passing the credit card fees to you. So what difference does it make if they give cash customers a discount?

 

[Torvy]

Every store is passing the credit card fees to you. So what difference does it make if they give cash customers a discount?

It's math. The reason stores take credit cards is because it attracts many more potential customers. Credit also protects the consumer (and the retailer in some cases) from some types of fraud. If a store give cash discounts, they are raising their base prices even higher on the very credit card users who are the bulk of their business to to account for the credit card fees. Think of it like this, if that retailer is trying to make up $1000 in fees and spreads that cost to 100% of their customers, everyone might pay 5% more per item. If they give cash discounts to 10% of their customers, they not only have to make up the $1000 they also have to make up the cash discounts and are only spreading the costs to 90% of their customers. So, prices go up maybe another 1%. To me, it is also the sign of a retailer who is ignorant of the value of the credit card relationship and I would rather not do business with someone like that...they are, in my experience, more likely to quibble over everything.

 

[5030]

Up here, we use our rewards to purchase gas. Kroger Mastercard. Balance gets paid off monthly. No finance-romance charge.

 

[hugo454]

our cash back is usually around $1200 a year,we cash in before our vacation each year.
I remember when they first started giving cash back and many of us at work would pay our mortgage payments with the card to get cash back but the banks quickly got hip to that and put a stop to it.We found that using 1 card for all purchases with the highest cash back percentage was the best way to go.Pay it in full every month, been doing it for a long time now.

 

[LD1]

It’s illegal to charge a credit card fee but it’s perfectly legal to give a cash discount.

I have heard also that it is illegal to charge more for credit card.

Dont know if its true but lots of places get away with it.

Here in ohio, Century link is pretty big for internet and phone. On their website to pay bill, its no fee to pay with a bank account but $3.50 fee if paid with a card.

The BMV for renewing license/tags does this also. Thats a Gov't entity.

SAme thing for my water bill. Extra 2% if paid online with a card.

 

[buckeyefarmer]

I’ve found most places that charge extra for credit card don’t have the best prices anyways. Most gas stations in my area don’t even take cash. One mom and pop is cash only.