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marciayudkin

What kind of peple don't have credit cards?

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6 hours ago, marciayudkin said:

>>It might be handy, but you're being charged on your own money. <<

If you pay your credit card bill in full every month, in what way does the above statement apply?  If your credit card has no annual fee and you pay all the bills promptly, there is no way that I can see that credit cards are taking advantage of the credit card holder.  On the contrary, you get to pay all your bills 6-8 weeks later, possibly get bonus points and also have a handy record of how much you spent where every month - all advantages not true of paying cash.

If someone doesn't want to use credit cards for personal reasons, that's one thing.  But to call the system exploitative doesn't seem true even for those who have balances every month.  They are being charged for a loan to them from the credit card company/bank.  That is not "being charged on your own money."  It is being charged on other people's money.

 It was my understanding there is a charge for credit. Maybe they don't charge for some things.  I'm not sure how they work now.  I just know I don't want to get linked into the "system".  I'm one of those who are hoping quite strongly we drop the petro-dollar and return to gold standard so..............................

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>> It was my understanding there is a charge for credit. <<

Nope.  Only if you do not pay your bills in full every month.  And only if your credit card charges an annual fee - most do not.

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The credit card companies charge retailers a fee for processing credit card transactions. That cost is reflected (along with other factors) in the prices we pay for goods. In that sense, we're all paying a price for using credit cards whether or not we pay any interest to the banks.

Of course, buying on credit is now so integral to the economy, that standard retail prices will incorporate that transaction cost for all purchases, credit or not. However, it's still possible to find (mostly independent) retailers who are open to negotiation for cash purchases. Admittedly, that's a bit trickier online.

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1 hour ago, Frank D said:

The credit card companies charge retailers a fee for processing credit card transactions. That cost is reflected (along with other factors) in the prices we pay for goods. In that sense, we're all paying a price for using credit cards whether or not we pay any interest to the banks.

Of course, buying on credit is now so integral to the economy, that standard retail prices will incorporate that transaction cost for all purchases, credit or not. However, it's still possible to find (mostly independent) retailers who are open to negotiation for cash purchases. Admittedly, that's a bit trickier online.

They charge for debit purchases too.

But I am happy to pay ever so slightly higher costs for the convenience of not having to carry around cash for anything.

Some retailers are getting smart though to work around that and save on the fees. They are creating apps you can use to make purchases at their establishments. For example, Starbucks has an app. You can load your account with money, you use the app for purchases, and then you earn rewards towards free drinks and other items. I see about 80% of customers using the app when they go into the local Starbucks here. No idea what it looks like nationwide, but Starbucks is probably saving a ton of money by cutting out the normal transaction costs.

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26 minutes ago, Mike Friedman said:

They charge for debit purchases too.

But I am happy to pay ever so slightly higher costs for the convenience of not having to carry around cash for anything.

Some retailers are getting smart though to work around that and save on the fees. They are creating apps you can use to make purchases at their establishments. For example, Starbucks has an app. You can load your account with money, you use the app for purchases, and then you earn rewards towards free drinks and other items. I see about 80% of customers using the app when they go into the local Starbucks here. No idea what it looks like nationwide, but Starbucks is probably saving a ton of money by cutting out the normal transaction costs.

Typically, debit card processing fees are lower than credit card charges - at least they used to be in the UK. And retailers can offset the fees by providing a cashback facility. But yes, I agree that the convenience of not needing to carry cash can be worth the cost.

The Starbucks app is a forerunner of what we can expect to find everywhere. In fact, the mobile payments model will likely replace physical credit/debit cards in the not-too-distant future. Interesting to watch the established banks jostling for positioning in that market.

 

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>>In fact, the mobile payments model will likely replace physical credit/debit cards in the not-too-distant future. <<

Don't be so sure. One of the takeaways from looking at payment preferences in different countries (described in a link earlier in this thread) is that cultural factors have a huge impact on which payment options become most popular where. 

I've read elsewhere that Sweden, for example, is becoming a nearly cashless economy, yet in, say, Germany, paying in cash is most popular.

Marcia Yudkin

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51 minutes ago, marciayudkin said:

>>In fact, the mobile payments model will likely replace physical credit/debit cards in the not-too-distant future. <<

Don't be so sure. One of the takeaways from looking at payment preferences in different countries (described in a link earlier in this thread) is that cultural factors have a huge impact on which payment options become most popular where. 

I've read elsewhere that Sweden, for example, is becoming a nearly cashless economy, yet in, say, Germany, paying in cash is most popular.

For sure, there are differences in payment preferences across various countries, but the swing from plastic cards to mobile payments is already under way. Even cardholders are getting used to contactless transactions which do away with the need for entering a PIN. In a society where just about everyone carries a smartphone, and with the emergence of systems like Apple Pay which currently allows smartphone users to pay without using their cards, it's not too much of a stretch to foresee a time when most retail transactions will be carried out by mobile apps - certainly up to particular value.

Germany is unusual, at least in Europe, in preferring cash transactions - and being anti-credit in general - but even there, mobile payments are beginning to make inroads.

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You guys might find this kind of funny, but here in Greece, we're way, way behind in processing credit and debit cards. The government recently passed a law requiring all businesses to install them, but it will take years. 

We generally do a cash business and an informal credit one at that. For example, if I'm short on cash, I'll have the guy at the supermarket just write down the total and when he can expect me to come back and pay him. 

Same with credit - it's written down in a book the owner maintains and you keep a running balance. People prefer cash to credit and NOBODY has a checking account - all bank accounts are savings. If you need a check, you get a bank check or do a wire transfer. 

Due to the economy, we also do a lot of bartering, which has made a big comeback here. 

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>>We generally do a cash business and an informal credit one at that. <<

And I assume there's a lot of under-the-table business transactions?  (As in many other Mediterranean countries.)  I.e., most people don't report their full income to the government.

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2 hours ago, marciayudkin said:

>>We generally do a cash business and an informal credit one at that. <<

And I assume there's a lot of under-the-table business transactions?  (As in many other Mediterranean countries.)  I.e., most people don't report their full income to the government.

That happens everywhere.  A lot of my clients pay me cash.  They're even willing to drive to me and drop it off in my mail box and I just mail them a receipt.  When we put a new roof on the house, we saved a ton of money paying cash because of the taxes here.  It's really not uncommon.  I too, do a lot of bartering.

I've always given my clients and potential clients options on payments.  Many people hate credit cards and still feel leery of online transactions.

I personally don't own any credit cards, and I have no reason to.  If I can't afford it now, then I really don't need it.  I hate banks and I use an online one that doesn't charge me to bank with it.  I do have a debit card but I rarely use it.  I pay only two bills online. 

 

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3 hours ago, marciayudkin said:

>>We generally do a cash business and an informal credit one at that. <<

And I assume there's a lot of under-the-table business transactions?  (As in many other Mediterranean countries.)  I.e., most people don't report their full income to the government.

I for one love cold hard cash!!

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I will take cash over plastic any and every day. Bartering does happen a whole lot more than you think it does. Once the recession hit back in 2008/2009, bartering came back in vogue. There's nothing wrong with that or with a running tab. It happens all of the time. It's called community.

I actually still love to go out shopping rather than shopping on line. I love being out in public, people watching, smiling at elderly people and actually trying on items before I purchase them. I love going to department stores like Marshall's and discovering all kinds of things I didn't even know I needed, haha!

We have a debit card for when one is needed and use it as credit as our bank tells us that is safer than using it as debit with a pin.We also have a credit card in case of emergency, a big emergency like a big tree falls on the house and takes the roof off kind of thing. We don't use it just because we can though.

 

Terra

 

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21 hours ago, marciayudkin said:

>>We generally do a cash business and an informal credit one at that. <<

And I assume there's a lot of under-the-table business transactions?  (As in many other Mediterranean countries.)  I.e., most people don't report their full income to the government.

We have a vast "Underground Economy" that's booming :)

Our VAT (Sales Tax) has steadily risen to 24% over the last 6 years or so, which only drives it all the more. The government, in all their wisdom, only consider how those numbers look on paper, but in reality, they're collecting less today than they did 6 years ago when the rate was 17%. 

They also doubled the "Road Tax", which has led to more than one million cars being taken off the road since 2010. The net result? Instead of continuing to collect 500 million Euros in Road Tax, they've halved that to 250 million Euros. Additionally, fuel sales are down 40% (yeah, high fuel taxes) and the loss in state revenue continues to ripple outwards. 

For example, our housekeeper (a really wonderful woman), has both her daughters enrolled in our private EFL school. She doesn't pay tuition and I buy their books for them - in exchange, she's at our house six evening a week cooking, cleaning and taking care of the baby. Every couple of months when her hours exceed the tutition costs, we pay her in cash to make up the difference - it's a win-win for all of us :)

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2 hours ago, BIG Mike said:

We have a vast "Underground Economy" that's booming :)

Our VAT (Sales Tax) has steadily risen to 24% over the last 6 years or so, which only drives it all the more. The government, in all their wisdom, only consider how those numbers look on paper, but in reality, they're collecting less today than they did 6 years ago when the rate was 17%. 

They also doubled the "Road Tax", which has led to more than one million cars being taken off the road since 2010. The net result? Instead of continuing to collect 500 million Euros in Road Tax, they've halved that to 250 million Euros. Additionally, fuel sales are down 40% (yeah, high fuel taxes) and the loss in state revenue continues to ripple outwards. 

For example, our housekeeper (a really wonderful woman), has both her daughters enrolled in our private EFL school. She doesn't pay tuition and I buy their books for them - in exchange, she's at our house six evening a week cooking, cleaning and taking care of the baby. Every couple of months when her hours exceed the tutition costs, we pay her in cash to make up the difference - it's a win-win for all of us :)

I remember our short sweet discussion on Greece's debt austerity plan.   Someday maybe the people in control will get a clue to the fact that they can't continue to bleed us out as an answer to financial problems that their idiocy caused in the first place.  California is big into this right now, too -- and the result is their infrastructure is crumbling and they are screaming for more federal money to fix their mistakes constantly.......money that comes from the whole country of taxpayers.   

It's completely astounding to me to see the amount of economic stupidity and greed that goes on in our governments.  I'm starting to think you should have to have required courses in certain subjects to qualify for office.

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Credit Cards can be useful on occasion.

 

I like to use Paypal, but had to buy a external HDD for myself recently, (since the horizontal ones are not available in AU) and the seller only had Credit Card, or charge on delivery options.

Unfortunately the seller didn't realize that if he cancels the Paypal part, the software tends to not work, or the Credit card works, but won't show it on Ebay's system.

 

So to make a long story short, the seller killed off my other attempts to get it through, and my bank made the CC, active again, so the item is on its way.

 

So unless Ebay fixes this issue, best to stay clear of Ebay transactions with sellers that don't have Paypal.

B)

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