Credit Cards are for MoneyWastingExperts

Rafter

My view is that retailers ought to offer a discount for debit cards but charge face value for cash and credit cards (which cost more for the retailer to purchase).

Consumers can then decide whether the 'insurance', interest free credit and cashback they are getting is worth paying the extra 1-2% that the retailer would charge.

At the moment it seems that credit cards are being subsidised and the regulators seem to agree with enquiries into interchange fees and other charges.

Problem is, unlike most countries in the world, we have got used to having 'free' banking in the UK. This means that banks make their money either through hidden fees, charges or simply paying less interest to savers and charging borrowers more.

The retailers can't have it both ways though. If they want people to be able to buy new washing machines, computers, furniture, clothes etc now rather than saving up, then credit cards are good for their businesses too.

R.

briona

Tight_Old_Git wrote:

the so called MSE Martin Lewis

Tight Old Git

I'm not sure what your problem is here – this site provides information which many thousands of people [myself included] find very helpful, but, and it's a very BIG but, you are by no means obliged to take any of it.

So if you see something that you don't like/agree with on the site, then you are free to simply disregard it – there's not need to snipe at Martin and others for their insights and contributions.

And from the tone of your messages, I am inclined agree with exel1966 – Grumpy Old Git!

michaels

If everyone always paid by credit cards the stores could all reduce their costs considerably by no longer having the expense and security risk of having cash on the premesis (just as online retaillers do). These savings could all then be passed on as lower prices...

TonyB

Just checked @ Barclays, who charge 23p per cheque paid in & 55p per £100 cash paid in.

It seems to me that on balance at larger stores the difference in potential price fixing would not be influenced too much by the customers method of payment.

As for the smaller retailer of perhaps lower cost items like my local butcher & grocery shop (in terms of amount spent) they both have a small 50p surcharge if the order is less than £10 & you chose to use your credit card.

The savings are made by the retailer in secuity costs, not having to cash up & also removing the risk of giving wrong change & having to fill in bank paying in slips & then trudge to the bank to pay in, plus the payment is in their account instantly as opposed to payments in which may need to clear.

Frankly I feel sorry that Martin has been critisised in this tone.

Is it possible that we who have responded have fallen into a trap laid by a synical leglifter, sitting back chuckling at some 3 pages of rather fatuous discussion???????



TonyB

nearlyrich

loonee wrote:

As someone who runs a small retail business, I would just like to mention that most banks actually charge businesses for paying in cash as well, so we definitely wouldn't reduce prices for paying by cash.

I thought that was the case as soon as I read the original post, was going to stick up for Martin but he's done a good enough job on his own. I use my CC's never paid a penny in interest or fees in about 15 years and just been stoozing £34k in a high interest account for the last few months.:j

Fruitcake

Security companies charge to transport money. The more money they transport, the more they charge. This is why so many shops now actively push cashback as it means less cash left at the end of each day thus saving on payments to security companies.
If we all stopped using credit cards and went back to cash, these shops would be paying more to transport their takings which would offset savings on charges to credit card companies. With the amounts of money involved, paying to have money instantly in the bank earning interest instead of waiting for cash to be deposited, and paying for it to be delivered, or cheques to clear is probably a case of swings and roudabouts.
There is a cost whichever method is used, so I doubt if using one exclusively will make the slightest difference to the cost of an item.

I use my credit card for everything because I have an offset mortgage. Keeping more money in the bank for a month until the cc bill saves me money. When the monthly bank statement arrives I can actually see and quantify the effect that using my credit card has. I pay the cc bill off in full each month and bank the loyalty payments as well.

Using a credit card saves me money, but that doesn't stop me asking for a cash discount. I just take the best deal on offer.


Fruitcake


You Only Listen To Me When I'm Wrong

Daniel_B

What an unusual thread,
I use 2 CC's, Amex Blue, and a FD Visa card.

The first for cashback, usually around £80 per year, though soon to switch to a Platinum me thinks, and the Visa for the times the Amex is not accepted.

This came to our rescue early this year - last November we ordered a beautiful sofa and a chair, and placed a £500 deposit - the company went bust, but we are being refunded our £500 as the contract is between the CC company and the supplier who failed to deliver the goods.

A lot of people had gone into the shop, and paid by cash or cheque, some up to 2.5K, these people are VERY unlikely to get anything more than a token amount, if that.

I have an offset mortgage, this month for example my Amex bill is £1000, that money has stayed in my account for a further 56 days, thus saving me a further approx £8 in interest charges on the mortgage, as well as the £10 cash back accrued.

I always pay off in full before the date, or on the date required - the FD one I only need to send the money on the exact date they say it needs to be there - they backdate it for some reason - suits me :rotfl:

As mentioned, a lot of people live off their cards, there is no discernible way you could make the system work, the cost would be ridiculous, there would have to be 2 prices for everything, or a flat rate of discount for cash.

Will that ever happen....?

Cheers

Dan

M_Thomson

Suewre wrote:

I don't know about Aldi and Poundland, as we don't have any around here, but Lidl definitely DO take credit cards.

Nope, they don't. They take Visa Debit cards or Maestro Debit Cards.

Dumbledore55

Tight_Old_Git wrote:

The overuse of credit cards for purchasing absolutely everything and anything means that we are paying through the nose for the privilege. Rather than celebrate cashback and the interest free period if you pay your balance in full, MSE's don't comment on the fact that the price of goods and services are inflated by the amount that goes to pay the credit card company and that far outweighs any benefit of cashback etc.

I expect Martin Lewis in future to be promoting use of cash, cheque books and debit cards, the man claims to be a MSE but by encouraging CC use it is clear he does not see the bigger picture ie credit cards are costing everyone a lot of money whether you use them or not.

Gosh TOG.....you sound positively anti-Martin, I'm sure there's a polite way of questioning the use of credit cards without sounding so aggressive towards someone who is helping so many people.

Dumbledore55

TOG - having looked back at all your previous posts, I do wonder why you've joined the site. You refer to us as 'money saving misers' and yet you're happy to stooze......what a contradiction!

Are you sure you're not a protagonist from Motley Fool?