Credit Card Reform

[Anonymous]

[Anonymous]

It will be hard for the credit card companys to "feed" off a good customer,aside from a AF, if one can PIF.

[Anonymous]

A good customer is subjective and defined by the bank.  To a bank, a good customer may be the person with good income, not too far over extended, but extended enough to carry balances, pay interest while making payments on time.

The PIF customer may not be a "good customer" in that light.

[cobaltnv]

They may not be able to feed off us like they could off subprime borrowers. They can, as you mentioned, return to the use of AF. They can also restrict, remove, lower rewards benefits drastically. This would allow them to keep more of the merchant fees themselves instead of give some back to the costumer. 

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@Anonymous wrote:

It will be hard for the credit card companys to "feed" off a good customer,aside from a AF, if one can PIF.

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[Anonymous]

What I guess I was saying is that PIF customers may once again become the "Dead Beat" Customers in bank lingo. 

[Anonymous]

Agreed...however, they will still make money on the transaction itself which may be significant based on the amount one charges each month on their card. If one PIFs what other motivation would a CC company have to even allow you to keep the card? I am no expert in banking...just asking

Message Edited by plasticman on 08-08-2009 01:02 PM

[smallfry]

Merchant fees generated by strong customers is free money.

[Anonymous]

Yes, we may see some, many or all of the following:

1.  Increased occurence of AF

2.  Lowered rewards

3.  Increased Merchant Fees (means increased product/service cost)

4.  Increased APR's

5.  Tighter credit qualifications (lower risk credit extension)

[Anonymous]

A good customer to me is defined as, people who are solely responsible for their actions for their credit card accounts and pay their bills on time. The customers are responsible for their own credit card bills according to their credit card terms of agreement, regardless of what they do for a living or how much income they earn. They are RESPONSIBLE FOR THEMSELF to live within their means not beyond their wallet. Live within your means and control your spending. That is a good customer. There is a saying "Know other is wise, Know yourself is Intelligent"..Be intelligent and learn more about yourself.

[Anonymous]

In the context of the OP, good customer was related to how a CCC or bank would view the situation, which will be profit based.

Profit comes from

AF

Merchant Fees

Interest

Interest doesn't apply to PIF customers.  In addition, PIF customers will tend to stay away from AF cards most likely.  This means that PIF customers have removed 2/3 of the profit pie.  Thus, to a bank, PIF may not be a good customer, just a low risk customer.