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FrugalRican wrote:

+1 Stan.

 

As a former business owner, it was the swipe fee that could become a killer.

I've never heard of having to pay for someone's rewards on their card.

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Whoa, you guys are auto-dimissing what could be right, and is at least partially so.  

There are different tiers when it comes to processing merchant transactions, and under at least the typical 3 tier model I know regular bland cards are tier 1 (fully qualified) and rewards cards are tier 2 (partially qualified).  I don't know where they fall on a 6 tier model which I've heard is being more and more used or what the specific differences are.

Anyway, to my limited knowledge the rates on tier 2 are higher than tier 1; I don't know if this is the full rewards price, but it's non-zero.

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Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 660, Wally TU 697, EX unknown (05/13/13)
Goal Score: 680 in all three (01/01/14)

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