topic Re: Heavy usage? in Credit Cards

Heavy usage?

Dw4250 — Mon, 23 Jun 2014 17:46:53 GMT

The term "heavy usage" gets thrown around a lot (including by me!). But it occured to me this morning...I am not really sure what this actually means to a bank/CCC. I know it probably varies from lender to lender, but I was curious what do you guys consider heavy usage:

1. Number of swipes or transactions/month?

2. Dollar amount put through a given card/month?

3. % of CL used on a given card/month?

4. All of the above?

Re: Heavy usage?

Anonymous — Mon, 23 Jun 2014 17:48:51 GMT

@Dw4250 wrote:
The term "heavy usage" gets thrown around a lot (including by me!). But it occured to me this morning...I am not really sure what this actually means to a bank/CCC. I know it probably varies from lender to lender, but I was curious what do you guys consider heavy usage:

1. Number of swipes or transactions/month?
2. Dollar amount put through a given card/month?
3. % of CL used on a given card/month?
4. All of the above?

I doubt if issuers care about #1. So #2 is key, with #3 taken into account (they can't expect you to spend $20K if they gave you a $500 CL)

Re: Heavy usage?

j_casteel — Mon, 23 Jun 2014 18:16:24 GMT

@Anonymous wrote:
@Dw4250 wrote:
The term "heavy usage" gets thrown around a lot (including by me!). But it occured to me this morning...I am not really sure what this actually means to a bank/CCC. I know it probably varies from lender to lender, but I was curious what do you guys consider heavy usage:

1. Number of swipes or transactions/month?
2. Dollar amount put through a given card/month?
3. % of CL used on a given card/month?
4. All of the above?

I doubt if issuers care about #1. So #2 is key, with #3 taken into account (they can't expect you to spend $20K if they gave you a $500 CL)

heavy usage will be dependent upon CL

Re: Heavy usage?

sexy_kitten7 — Mon, 23 Jun 2014 19:06:06 GMT

I would say #3. My guess is that carrying (or charging) more than 50% of the CL constitutes heavy usage.

For heavy MSers, it's not uncommon to charge 2 or 3X CL per month. But the banks catch on pretty quickly.

Re: Heavy usage?

celluloid17 — Mon, 23 Jun 2014 19:14:36 GMT

I wouldn't discount #1. Don't merchants have to pay a swipe fee to the credit card companies every time a card is swiped? I would think the CCCs would care less about how much is being charged and more about the fact their card is actually being used, especially if the person isn't carrying a balance and thus not paying interest fees.

Re: Heavy usage?

MidnightJester — Mon, 23 Jun 2014 19:17:06 GMT

the swipe fee is .30cents or so. They make 2-3% on every transaction on top of that 30cents, Unless you are making alot alot of small purchases they make more bottom dollars on the % they take from each transaction. every $100 is $3 in their pocket if I understand everything correctly

Re: Heavy usage?

takeshi74 — Mon, 23 Jun 2014 20:40:38 GMT

I don't really worry about it. My usage is my usage. It's not going to change to meet a vague term such as "heavy usage".

Re: Heavy usage?

Closingracer99 — Mon, 23 Jun 2014 20:46:53 GMT

@celluloid17 wrote:
I wouldn't discount #1. Don't merchants have to pay a swipe fee to the credit card companies every time a card is swiped? I would think the CCCs would care less about how much is being charged and more about the fact their card is actually being used, especially if the person isn't carrying a balance and thus not paying interest fees.

Creditors love #1 and if anything it should increase your Credit Limit

Re: Heavy usage?

Anonymous — Mon, 23 Jun 2014 20:49:56 GMT

@Closingracer99 wrote:
@celluloid17 wrote:
I wouldn't discount #1. Don't merchants have to pay a swipe fee to the credit card companies every time a card is swiped? I would think the CCCs would care less about how much is being charged and more about the fact their card is actually being used, especially if the person isn't carrying a balance and thus not paying interest fees.

Creditors love #1 and if anything it should increase your Credit Limit

So 30 $1 transactions are better than 2 $1000 ones?

Re: Heavy usage?

Closingracer99 — Mon, 23 Jun 2014 21:00:22 GMT

@Anonymous wrote:
@Closingracer99 wrote:
@celluloid17 wrote:
I wouldn't discount #1. Don't merchants have to pay a swipe fee to the credit card companies every time a card is swiped? I would think the CCCs would care less about how much is being charged and more about the fact their card is actually being used, especially if the person isn't carrying a balance and thus not paying interest fees.

Creditors love #1 and if anything it should increase your Credit Limit
So 30 $1 transactions are better than 2 $1000 ones?

No But they will glady take both

Re: Heavy usage?

sexy_kitten7 — Mon, 23 Jun 2014 21:17:48 GMT

@Closingracer99 wrote:
@Anonymous wrote:
@Closingracer99 wrote:
@celluloid17 wrote:
I wouldn't discount #1. Don't merchants have to pay a swipe fee to the credit card companies every time a card is swiped? I would think the CCCs would care less about how much is being charged and more about the fact their card is actually being used, especially if the person isn't carrying a balance and thus not paying interest fees.

Creditors love #1 and if anything it should increase your Credit Limit
So 30 $1 transactions are better than 2 $1000 ones?
No But they will glady take both

When you say the "love #1," you are referring to the marketing concept of "wallet share." Out of every purchase this consumer makes, what percentage are Amex purchases? This is the whole point of the stupid Everyday cards. They want to become your favorite bank by forcing you to always use them.

Financially speaking, the 2x$1000 transactions will have the greatest interchange fees.