They are charged to the vendor but you pay for them through higher prices.
thrasher865 wrote:Are these transaction fees paid by the vendors or me?
But no more than I would by paying cash, right? As long as I'm not duping myself into thinking that cash back is actually a reward for using my card and more an incintive to use it for not useful purpose...
Right. Same price. I remember around 20 years ago, some stores tried offering lower prices for cash or check, but they finally gave up. As erchambers said, all prices are higher to account for CC use.
It's true though that rewards cards can tempt you to buy more than you might otherwise.
Sorry guys, just one more question.I didn't read before hand, but the blue cash interest is computed based on an average daily balance. Unless my understanding is wrong, doesn't this completely negate any reward to PIF before each statement date? Should I PIF every time I make a major purchase to avoid my interest offsetting any benefit from my cash back rewards?
[edit 2] Just FYI it says method for computing balance for purchases is Average Daily Balance (Including New Purchases). But I still have 20 days to pay off purchases with absolutely no interest charges, correct? Assuming the previous month was paid in full? Sorry for all the questions, I'm just looking to max out my money. Being in college, I'm already on a tight budget, so I can't afford to just throw money at a CCC.
Message Edited by thrasher865 on 05-22-2008 12:51 PM