Re: So.. How does the Paypal debit card work?
07-14-2012 11:09 PM
I would definitely prefer the a cash discount off the advertised price, as opposed to paying extra for the advertised price. That way there are no surprises at check out.
One thing for sure though the market will find an equilibrium. The merchants can use the surcharge as a bargaining chip with the credit card companies to negotiate reasonable rates with hopefully no surcharges, and hopefully preserving some credit card rewards as well if not as generous as they are now.
As a consumer I always go with what benefits me the best. So far except for some small purchases and local businesses that are cash only I have put everything I can on my credit card for the rewards. If the merchant is offering a good enough cash discount I would take that every time. If it becomes widespread enough to where I am always paying cash I would only keep one no AF card to maintain a credit history and good score, while paying cash or debit for everything else.
If I do get a debit card I would want it for sure not linked to my checking account just so if fraud does occur all my money doesn't disappear. A card that I can load up with what I need, and transfer what I don't need back to my checking account and of course with no fees which is why paypal crossed my mind.
Another thing we haven't thought of is what does this ruling mean for other forms of payment like paying with your smartphone? This could pave the way for paypal and other payment apps as alternatives to credit cards.