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01-14-2013 07:56 AM
Also, is the APR higher specifically because of the rewards? Many people PIF so the APR doesn't really come in to it, and higher swipe fees for reward cards is what actually funds it. The higher APR for those that pay interest is gravy for the issuer I would think.
01-14-2013 09:05 AM
Hope all the participants in this thread pay in full each and every month. If not, you don't have any rewards, just a slightly reduced interest rate on debt.
I would hope no one is using a rewards card to carry debt; The APR is specifically higher because of the rewards...
there are definitely exceptions to that rule
my chase freedom apr is my lowest at 9.79%
i usually pay all my cc's in full each month, but if i had to carry a balance for a few months, i would use my freedom
01-14-2013 09:12 AM - edited 01-14-2013 09:13 AM
Like I said, AMEX is doing the selecting, not the average card member. They are deliberately making places like Costco all exclusive to AMEX for the same reason. There are less costcos but the average costco is far bigger than the average walmart, and also further...it just so happens that everything you buy in these "bulk savings" gimmick stores is packed in boxes of 10 or 20, making the average item look like a deal since everything they sell is marketed in a way that can't be compared with other places and prices (Samsung makes a model 8000 but for costco, they will produce a model 7950, just for costco, so you cant compare the price anywhere on your phone). Then a person buy a handful of items at $10 ea minimum to make the trip and membership worth their while..=Combine those membership fees with the distance of costco and the way things are packaged (in bulk), people will spend more on average since they will only be making the trip once a month and with a membership cost charged every year, you can bet that these "deal catchers" are going to make use of that membership card.
Their tactics are the equivalent of a hospital denying a person surgery because they drove into the emergency room in a 1982 honda, and you dont look like you can pay the bill sooooo it's cut off time. Please call us and let us know when you're making more money, only then can we approve your request
You make business strategy sound so dirty. I'm not even sure I get the metaphor.
I will say, chiming in several pages late, accepting AMEX might be a toss up to some merchants; but restaurants, especially those that may bring in a business/corporate clientel, shouldn't think twice. There are simply too many corporate AMEX holders, or personal AMEX holders that use it for business, to ignore. If I'm going to plan a meal for my team, or clients, or anything else business related, the merchant better take AMEX, because that's all I'm paying with. It's not because I'm a snob, it's simply what my business uses.
I did not make it sound "dirty", that's just how their business is run. You go into costco and voila it's a warehouse with no proper flooring, no bags (only odd-shaped cartons if you ask, and if they have any). yet they still have trouble competing with the prices you find on Amazon which has no membership, and has free shipping on almost everything small and large. Amazon's prices are still lower than costco, without a massive unfinished warehouse, without a membership and without the whole AMEX gimmick
01-14-2013 09:26 AM
I own a restaurant and I accept all 4 major cards. The rationalization that some of my non-Amex accepting colleagues offer is kinda lame:
"Chances are, if they have an Amex, they also have a Visa or MC lurking in their wallet. They'll use that instead."
Well, OK. But why fight people on this? If they prefer Amex, chances are they are the kind of people that I want coming in more often. I accept CC fees as part of doing good business. Heck, I even proactively went to Amex's Go Social site to offer promotions through the Amex Synced Card program (formerly known as link, like, love on FB.) And I advertise it through FourSquare as well.
Some restaurant owners have a nickel and dime attitude and they are generally, in my experience, the more marginal establishments that aren't busy enough to not be so bothered by the fees. I also advertise heavily. Again, many I know personally do NOT do any of these things because they cannot prove to themselves in concrete fashion that it led to more business. Foolish attitudes all the way around. You have to accept these expenses as a cost of increasing business and just KNOW they are correlated.
My Corporate expense card is AmEX so if I go to a restaurant on business I pretty much have to make sure that I pay with that card or be out the money on my own pocket
01-15-2013 07:25 AM
Our business recently started charging a 1.5% surcharge on any charge of 2,500.00 or more to essentially split the swipe fee difference with the customer past that point. We deal with selling equipment, and a 15,000 deposit results in a fee of nearly 450.00. That does make a difference and I can understand why businesses would do this