I'm feeling the effects of the credit crunch

[Thue]

I assume that is just the credit card companies trying to trick you in, in the hope that you will go over balance and have to pay interest. Dirty trick. But if you can control it then I guess you are tricking them by getting the benefits without actually handing them any money.

The consumer protection laws in Denmark are fairly good, and AFAIK using a credit card gives no extra benefits here. So better security by using a credit card is not really a factor for me.

[Dauphin]

Credit card companies make money from vendors paying for the use of the merchant facility. So even if you pay your card off each month, and therefore pay no interest, they still make money from you using your card. American Express charge vendors the most from what I recall.

I use a credit card for the up to 60 days interest free period (i.e I can get interest on it in my savings account instead), and the 0.5%-1% discount I get on all my purchases. If I spend $10,000 in year that's around $150 a year in my pocket for not using a debit card.

[Thue]

So the stores give you 1% lower price in return for kick-backs from the credit card companies, who try to make you create an unwanted debt? What a bunch of bottom-feeders! Change stores!

[Asher]

Originally posted by Thue
The consumer protection laws in Denmark are fairly good, and AFAIK using a credit card gives no extra benefits here.

Sounds to me like you are getting screwed by your government.

Credit cards are awesome if used intelligently. Free (to the consumer) purchase protection, extended warranties, and money. I don't pay anything to use my card and I've received thousands of dollars back for using it. I've also not once carried a balance on my card, so I've used it for very frequent interest-free short-term loans as well.

I'm assuming my card company keeps upping my limit on the hopes that I'll start carrying a balance. Which is cute, but silly. In the unlikely event I need to borrow money short-term, I've got a line of credit or my family to use.

[notyoueither]

Originally posted by Thue
So the stores give you 1% lower price in return for kick-backs from the credit card companies, who try to make you create an unwanted debt? What a bunch of bottom-feeders! Change stores!

No. What makes you think that?

The merchant charges you $100 for your goods. You pay with a credit card or charge card. The merchant gets charged 1.5% to 5% by the credit company. The rate the merchant pays depends on the card and a variety of other factors.

American Express is the highest (3 to 5%) due to the fact that most of their cards are NOT credit cards. The full balance is to be paid off with each monthly bill. They get merchants to accept them as a convenience for their clientelle (to get more business).

What Dauphin described is an added benefit of certain cards for the consumer. They give you cash back (or points that you can redeem for goods or financial services).

[Thue]

Hmm - this all seems simpler in Denmark. My card is simply closed if there isn't money on it. So the store can always be sure that a payment by credit card is a real payment, and therefore don't have to be afraid of not getting its money, and therefore I guess don't have to engage in strange bonus schemes to change prices depending on who is paying and how.

I have heard you have coupons, refund checks, etc in the US. I think they are illegal in Denmark, so stores actually just write the actually price, which you just pay. Asher will probably say that is our government depriving us of the joy of wasting time collecting coupons, but it is really very nice not to have to waste time with that kind of stuff.

The charge to the merchant of using the debit main debit card in Denmark is a flat 0.5kr, or 0.1$.

[Winston]

I'm with Thue. Just pay with my own money and get the hell out, figuratively speaking. All the hoopla they're trying to establish with credit cards seems quite redundant and a colossal waste of time and resources. Not necessarily my time and resources, but I can still be opposed to the concept as a matter of principle.

I also believe that widespread use of credit cards can only drive the general purchasing prices in one direction, which is certainly not in the interest of consumers.

[notyoueither]

Originally posted by Thue
Hmm - this all seems simpler in Denmark. My card is simply closed if there isn't money on it. So the store can always be sure that a payment by credit card is a real payment, and therefore don't have to be afraid of not getting its money, and therefore I guess don't have to engage in strange bonus schemes to change prices depending on who is paying and how.

I have heard you have coupons, refund checks, etc in the US. I think they are illegal in Denmark, so stores actually just write the actually price, which you just pay. Asher will probably say that is our government depriving us of the joy of wasting time collecting coupons, but it is really very nice not to have to waste time with that kind of stuff.

The charge to the merchant of using the debit main debit card in Denmark is a flat 0.5kr, or 0.1$.

Who said anything about changing prices? Real payments?

It's a violation of merchant agreement(s) with the bank(s) to charge more for a purchase due to it being paid for with a credit card. Some shadier, low end businesses find ways around this, but by far the majority of businesses do no such thing.

Are you bringing in things from other discussions?

However, I guess it is simpler for you to not have a credit card that gives you financial benefits. That's swell for you. Some of us prefer to live more complicated, ta.

Spelling

[Dauphin]

Originally posted by Thue
Hmm - this all seems simpler in Denmark. My card is simply closed if there isn't money on it. So the store can always be sure that a payment by credit card is a real payment, and therefore don't have to be afraid of not getting its money, and therefore I guess don't have to engage in strange bonus schemes to change prices depending on who is paying and how.

I have heard you have coupons, refund checks, etc in the US. I think they are illegal in Denmark, so stores actually just write the actually price, which you just pay. Asher will probably say that is our government depriving us of the joy of wasting time collecting coupons, but it is really very nice not to have to waste time with that kind of stuff.

The charge to the merchant of using the debit main debit card in Denmark is a flat 0.5kr, or 0.1$.

Vendors get paid by your card company "pretty damn quick", regardless of when, or if, you repay your card company the amount you owe.

Paying by debit card is subject to the same type of cost structures, except the charge is slightly less to the vendor - this is because the card company that provides the consumer the debit card will, in this case, be carrying no risk in terms of amounts being lent.

[Asher]

Originally posted by Thue
Hmm - this all seems simpler in Denmark. My card is simply closed if there isn't money on it. So the store can always be sure that a payment by credit card is a real payment, and therefore don't have to be afraid of not getting its money, and therefore I guess don't have to engage in strange bonus schemes to change prices depending on who is paying and how.

I have heard you have coupons, refund checks, etc in the US. I think they are illegal in Denmark, so stores actually just write the actually price, which you just pay. Asher will probably say that is our government depriving us of the joy of wasting time collecting coupons, but it is really very nice not to have to waste time with that kind of stuff.

The charge to the merchant of using the debit main debit card in Denmark is a flat 0.5kr, or 0.1$.

I find it amusing that people in your country pay some of the highest prices for goods in the world and you try to spin it like a good thing.

Credit Cards are amazing if you're intelligent and know your spending limits. Maybe people in Denmark are far more stupid in Canada and need the government to take away the perks for people who use them properly for fear of idiots using them improperly, but I'm glad my country isn't like that.

I'm not a fan of mail-in rebates or coupons. In fact, I never use them. I vote with my dollar.

[DrSpike]

Originally posted by Dauphin


Buy it to commence on 31 December and you'll get 2008 prices. Buy it after the New Year and you'll be paying 2009 prices.

Thanks, I'll bear that in mind!

[SpencerH]

The biggest risk of a debit card is that if its stolen and used the money is gone from your account. You may get it back eventually but for the time being you're ****ed. If my credit cards are stolen its not really my problem.

[Colonâ„¢]

Originally posted by SpencerH
The biggest risk of a debit card is that if its stolen and used the money is gone from your account. You may get it back eventually but for the time being you're ****ed. If my credit cards are stolen its not really my problem.

Uhm debit cards in my neck of the wood require a secret code to use. You can also instantly have the card blocked when you lose it.

[Dauphin]

The relevancy is if the card is used before you cancel it. Credit cards are more useful to you in the worst case scenario.

[Colonâ„¢]

That's actually a rather small relevancy since whoever obtains the card doesn't have the code. Moreover his window of opportunity should be minimal since I can dial 24/7 to have it blocked. I am trying very hard to rephrase what I already said.