Saw a nice little comment on Yahoo's comment section...

[Slashsnake]

Those people on there must be the stupidest people I've ever seen in my life.

With that said, I noted a few comments and laughed out loud to the comments to an article that have to do with Dodd-Frank. It's like nobody read the article or understands the negative areas to the law. One particular post says:

Just as low risk higher income people subsidize high risk lower income people on Obamacare, the same goes for credit card holders. For every one getting Airline miles, a few pennies on their purchases and other perks, there is somebody out there, probably a more than a few somebody's paying a high up to 29% interest rate on their credit card. Nothing is for nothing and if people don't want to help those in need of more affordable healthcare, lower the interest rate on credit cards so people can stop subsidizing someone else's free vacation.

Can someone please explain to me how interest rates directly contribute to another cardholder's vacation? Rewards come from interchange fees; hence, why debt card rewards disappeared after the Durbin Amendment under Dodd-Frank was drafted up and signed by the president. Credit cards offer rewards because they want you use to use their card over another bank's card or even cash.

Maybe this guy doesn't understand that even if you're poor, you don't charge more money than you can afford to pay off in full every month... So why would it be a responsible cardholder's responsibility to help out the irresponsible cardholder? Sounds like a democrat... Or just an idiot.

Additionally, if your credit is in decent shape, you're probably paying 15%-20% at the most in interest charges, not 29% unless you've been late for a payment, which is also inexcusable if you pay off your balance once a week.

How about this one:

There should be no fee on retailers for allowing people to pay with their money via card. This is something that banks and credit institutions passed on to retailers. How is fair that allowing people to pay or use their money from a credit or bank service costs a retailer money?

Well, you see here buddy, the merchant pays an interchange fee because the bank is risking a potential fraud transaction since most merchants are too lazy to tell their employees to check for a signature like they're supposed to, fail to upgrade to 21st century chip technology, or both. The banks have to pay for the fraud somehow, and usually fraud is a result of the merchant's stupidity by not taking the above measures in the first place.


It seems painfully obvious the average American does not understand the most basic concepts in business, and it's no wonder we're in such deep shit with our economy. It's funny to see how most on there are pro-Durbin Amendment even though the article clearly states that merchants don't pass the savings onto consumers, and banks pass the loss of revenue onto consumers by a few difference measures.

 

[irosie91]

I never understood economics-----interest confuses me no end

 

[Moonglow]

Compound interest is the most powerful force in the universe~Albert Einstein..

 

[saveliberty]

You seem to use a credit card as a debit card. Why are YOU using a credit card to begin with? Credit cards are for people who need to borrow funds.

 

[Fenton Lum]

You seem to use a credit card as a debit card. Why are YOU using a credit card to begin with? Credit cards are for people who need to borrow funds.

Many americans these days do so just to get by in our rerigged wealth redistribution economy.

The amount of average credit card debt has been steadily increasing over the long term. A person born between 1980 and 1984 has on average $5,689 more in credit card debt than his or her parents (those born between 1950 and 1954) at the same stage of life and $8,156 more in credit card debt than his or her grandparents (those born between 1920 and 1924). 7

Read more: http://www.nasdaq.com/article/credit-card-debt-statistics-cm393820#ixzz4a0NyjY8D

Perhaps we're not subsidizing corporate welfare enough yet.

 

[JakeStarkey]

If one can pay in full each month, a credit card is fine.

Make others pay you interest, not the other way around.

 

[Slashsnake]

You seem to use a credit card as a debit card. Why are YOU using a credit card to begin with? Credit cards are for people who need to borrow funds.

Which is the right way to do it. Rewards on every purchase, despite resolution, extended warranties, $100 yearly airline credit, hotel perks, special deals for cardholders, etc.

Only a moron carries a balance.

 

[Penelope]

Those people on there must be the stupidest people I've ever seen in my life.

With that said, I noted a few comments and laughed out loud to the comments to an article that have to do with Dodd-Frank. It's like nobody read the article or understands the negative areas to the law. One particular post says:

Just as low risk higher income people subsidize high risk lower income people on Obamacare, the same goes for credit card holders. For every one getting Airline miles, a few pennies on their purchases and other perks, there is somebody out there, probably a more than a few somebody's paying a high up to 29% interest rate on their credit card. Nothing is for nothing and if people don't want to help those in need of more affordable healthcare, lower the interest rate on credit cards so people can stop subsidizing someone else's free vacation.

Can someone please explain to me how interest rates directly contribute to another cardholder's vacation? Rewards come from interchange fees; hence, why debt card rewards disappeared after the Durbin Amendment under Dodd-Frank was drafted up and signed by the president. Credit cards offer rewards because they want you use to use their card over another bank's card or even cash.

Maybe this guy doesn't understand that even if you're poor, you don't charge more money than you can afford to pay off in full every month... So why would it be a responsible cardholder's responsibility to help out the irresponsible cardholder? Sounds like a democrat... Or just an idiot.

Additionally, if your credit is in decent shape, you're probably paying 15%-20% at the most in interest charges, not 29% unless you've been late for a payment, which is also inexcusable if you pay off your balance once a week.

How about this one:

There should be no fee on retailers for allowing people to pay with their money via card. This is something that banks and credit institutions passed on to retailers. How is fair that allowing people to pay or use their money from a credit or bank service costs a retailer money?

Well, you see here buddy, the merchant pays an interchange fee because the bank is risking a potential fraud transaction since most merchants are too lazy to tell their employees to check for a signature like they're supposed to, fail to upgrade to 21st century chip technology, or both. The banks have to pay for the fraud somehow, and usually fraud is a result of the merchant's stupidity by not taking the above measures in the first place.


It seems painfully obvious the average American does not understand the most basic concepts in business, and it's no wonder we're in such deep shit with our economy. It's funny to see how most on there are pro-Durbin Amendment even though the article clearly states that merchants don't pass the savings onto consumers, and banks pass the loss of revenue onto consumers by a few difference measures.

I think the first is saying that those free miles come from somewhere and its probably the high interest some pay that offset it. So free is free. I'm not sure if one has their points taken away if one is not paying at least the min on their credit card.

By the way I want people to remember we subsidize the congressmen's healthcare and also the employees and also the employers, who do get to claim it as a write off and also the employees because they do not pay taxes on their share of copay for HI.

 

[Penelope]

You seem to use a credit card as a debit card. Why are YOU using a credit card to begin with? Credit cards are for people who need to borrow funds.

We pay everything with CC, saves on checks and also the points add up. We only have 2 cards though.

 

[Wry Catcher]

I never understood economics-----interest confuses me no end

Econ 101: Never trust, never take the words of a Banker or Broker as true. Don't trust, and check out what they say, and then what they do.

 

[Slashsnake]

Those people on there must be the stupidest people I've ever seen in my life.

With that said, I noted a few comments and laughed out loud to the comments to an article that have to do with Dodd-Frank. It's like nobody read the article or understands the negative areas to the law. One particular post says:

Just as low risk higher income people subsidize high risk lower income people on Obamacare, the same goes for credit card holders. For every one getting Airline miles, a few pennies on their purchases and other perks, there is somebody out there, probably a more than a few somebody's paying a high up to 29% interest rate on their credit card. Nothing is for nothing and if people don't want to help those in need of more affordable healthcare, lower the interest rate on credit cards so people can stop subsidizing someone else's free vacation.

Can someone please explain to me how interest rates directly contribute to another cardholder's vacation? Rewards come from interchange fees; hence, why debt card rewards disappeared after the Durbin Amendment under Dodd-Frank was drafted up and signed by the president. Credit cards offer rewards because they want you use to use their card over another bank's card or even cash.

Maybe this guy doesn't understand that even if you're poor, you don't charge more money than you can afford to pay off in full every month... So why would it be a responsible cardholder's responsibility to help out the irresponsible cardholder? Sounds like a democrat... Or just an idiot.

Additionally, if your credit is in decent shape, you're probably paying 15%-20% at the most in interest charges, not 29% unless you've been late for a payment, which is also inexcusable if you pay off your balance once a week.

How about this one:

There should be no fee on retailers for allowing people to pay with their money via card. This is something that banks and credit institutions passed on to retailers. How is fair that allowing people to pay or use their money from a credit or bank service costs a retailer money?

Well, you see here buddy, the merchant pays an interchange fee because the bank is risking a potential fraud transaction since most merchants are too lazy to tell their employees to check for a signature like they're supposed to, fail to upgrade to 21st century chip technology, or both. The banks have to pay for the fraud somehow, and usually fraud is a result of the merchant's stupidity by not taking the above measures in the first place.


It seems painfully obvious the average American does not understand the most basic concepts in business, and it's no wonder we're in such deep shit with our economy. It's funny to see how most on there are pro-Durbin Amendment even though the article clearly states that merchants don't pass the savings onto consumers, and banks pass the loss of revenue onto consumers by a few difference measures.

I think the first is saying that those free miles come from somewhere and its probably the high interest some pay that offset it. So free is free. I'm not sure if one has their points taken away if one is not paying at least the min on their credit card.

By the way I want people to remember we subsidize the congressmen's healthcare and also the employees and also the employers, who do get to claim it as a write off and also the employees because they do not pay taxes on their share of copay for HI.

The rewards come mostly from interchange fees, while interest goes towards the bank's reserves.

If someone wants to borrow at a decent interest rate, take out a loan which is less risky for the bank. Again this is Economics 101, which is something most people can't understand apparently. If you notice, student loans, cars, etc., are all around the 2%-5% range for the average person in terms of interest rates. The bank can repossess your car, the student loan default gets garnished from your wages, and defaulting on a house will make you homeless. With credit cards you can just walk away with a 90+ day late on your record.

 

[Penelope]

Those people on there must be the stupidest people I've ever seen in my life.

With that said, I noted a few comments and laughed out loud to the comments to an article that have to do with Dodd-Frank. It's like nobody read the article or understands the negative areas to the law. One particular post says:

Just as low risk higher income people subsidize high risk lower income people on Obamacare, the same goes for credit card holders. For every one getting Airline miles, a few pennies on their purchases and other perks, there is somebody out there, probably a more than a few somebody's paying a high up to 29% interest rate on their credit card. Nothing is for nothing and if people don't want to help those in need of more affordable healthcare, lower the interest rate on credit cards so people can stop subsidizing someone else's free vacation.

Can someone please explain to me how interest rates directly contribute to another cardholder's vacation? Rewards come from interchange fees; hence, why debt card rewards disappeared after the Durbin Amendment under Dodd-Frank was drafted up and signed by the president. Credit cards offer rewards because they want you use to use their card over another bank's card or even cash.

Maybe this guy doesn't understand that even if you're poor, you don't charge more money than you can afford to pay off in full every month... So why would it be a responsible cardholder's responsibility to help out the irresponsible cardholder? Sounds like a democrat... Or just an idiot.

Additionally, if your credit is in decent shape, you're probably paying 15%-20% at the most in interest charges, not 29% unless you've been late for a payment, which is also inexcusable if you pay off your balance once a week.

How about this one:

There should be no fee on retailers for allowing people to pay with their money via card. This is something that banks and credit institutions passed on to retailers. How is fair that allowing people to pay or use their money from a credit or bank service costs a retailer money?

Well, you see here buddy, the merchant pays an interchange fee because the bank is risking a potential fraud transaction since most merchants are too lazy to tell their employees to check for a signature like they're supposed to, fail to upgrade to 21st century chip technology, or both. The banks have to pay for the fraud somehow, and usually fraud is a result of the merchant's stupidity by not taking the above measures in the first place.


It seems painfully obvious the average American does not understand the most basic concepts in business, and it's no wonder we're in such deep shit with our economy. It's funny to see how most on there are pro-Durbin Amendment even though the article clearly states that merchants don't pass the savings onto consumers, and banks pass the loss of revenue onto consumers by a few difference measures.

I think the first is saying that those free miles come from somewhere and its probably the high interest some pay that offset it. So free is free. I'm not sure if one has their points taken away if one is not paying at least the min on their credit card.

By the way I want people to remember we subsidize the congressmen's healthcare and also the employees and also the employers, who do get to claim it as a write off and also the employees because they do not pay taxes on their share of copay for HI.

The rewards come mostly from interchange fees, while interest goes towards the bank's reserves.

If someone wants to borrow at a decent interest rate, take out a loan which is less risky for the bank. Again this is Economics 101, which is something most people can't understand apparently. If you notice, student loans, cars, etc., are all around the 2%-5% range for the average person in terms of interest rates. The bank can repossess your car, the student loan default gets garnished from your wages, and defaulting on a house will make you homeless. With credit cards you can just walk away with a 90+ day late on your record.

Do they take away your points if you default on the card? Bad credit from a CC goes on your credit report and may even keep you from getting a home or car loan, unless the bank do what they did before 08 , borrow to whoever.

 

[Slashsnake]

Those people on there must be the stupidest people I've ever seen in my life.

With that said, I noted a few comments and laughed out loud to the comments to an article that have to do with Dodd-Frank. It's like nobody read the article or understands the negative areas to the law. One particular post says:

Just as low risk higher income people subsidize high risk lower income people on Obamacare, the same goes for credit card holders. For every one getting Airline miles, a few pennies on their purchases and other perks, there is somebody out there, probably a more than a few somebody's paying a high up to 29% interest rate on their credit card. Nothing is for nothing and if people don't want to help those in need of more affordable healthcare, lower the interest rate on credit cards so people can stop subsidizing someone else's free vacation.

Can someone please explain to me how interest rates directly contribute to another cardholder's vacation? Rewards come from interchange fees; hence, why debt card rewards disappeared after the Durbin Amendment under Dodd-Frank was drafted up and signed by the president. Credit cards offer rewards because they want you use to use their card over another bank's card or even cash.

Maybe this guy doesn't understand that even if you're poor, you don't charge more money than you can afford to pay off in full every month... So why would it be a responsible cardholder's responsibility to help out the irresponsible cardholder? Sounds like a democrat... Or just an idiot.

Additionally, if your credit is in decent shape, you're probably paying 15%-20% at the most in interest charges, not 29% unless you've been late for a payment, which is also inexcusable if you pay off your balance once a week.

How about this one:

There should be no fee on retailers for allowing people to pay with their money via card. This is something that banks and credit institutions passed on to retailers. How is fair that allowing people to pay or use their money from a credit or bank service costs a retailer money?

Well, you see here buddy, the merchant pays an interchange fee because the bank is risking a potential fraud transaction since most merchants are too lazy to tell their employees to check for a signature like they're supposed to, fail to upgrade to 21st century chip technology, or both. The banks have to pay for the fraud somehow, and usually fraud is a result of the merchant's stupidity by not taking the above measures in the first place.


It seems painfully obvious the average American does not understand the most basic concepts in business, and it's no wonder we're in such deep shit with our economy. It's funny to see how most on there are pro-Durbin Amendment even though the article clearly states that merchants don't pass the savings onto consumers, and banks pass the loss of revenue onto consumers by a few difference measures.

I think the first is saying that those free miles come from somewhere and its probably the high interest some pay that offset it. So free is free. I'm not sure if one has their points taken away if one is not paying at least the min on their credit card.

By the way I want people to remember we subsidize the congressmen's healthcare and also the employees and also the employers, who do get to claim it as a write off and also the employees because they do not pay taxes on their share of copay for HI.

The rewards come mostly from interchange fees, while interest goes towards the bank's reserves.

If someone wants to borrow at a decent interest rate, take out a loan which is less risky for the bank. Again this is Economics 101, which is something most people can't understand apparently. If you notice, student loans, cars, etc., are all around the 2%-5% range for the average person in terms of interest rates. The bank can repossess your car, the student loan default gets garnished from your wages, and defaulting on a house will make you homeless. With credit cards you can just walk away with a 90+ day late on your record.

Do they take away your points if you default on the card? Bad credit from a CC goes on your credit report and may even keep you from getting a home or car loan, unless the bank do what they did before 08 , borrow to whoever.

Taking away your credit card points, which is impossible if you redeem them often, is a far cry from taking away your means of transportation, probably without them even telling you when they'll do it...You'll just go outside to drive to work one day and your car will be gone. Big difference.

 

[EdwardBaiamonte]

Can someone please explain to me how interest rates directly contribute to another cardholder's vacation?

very simple, money is fungible so vacations are paid for from any number of sources including, interchange fees, debit cards, interest rates, etc.

 

[Slashsnake]

Can someone please explain to me how interest rates directly contribute to another cardholder's vacation?

very simple, money is fungible so vacations are paid for from any number of sources including, interchange fees, debit cards, interest rates, etc.

Mostly interchange fees, though. Debit cards have nothing to do with rewards because banks make $0.22 + 0.05% per transaction which is only great if a consumer makes nothing but $5 purchases everywhere and uses a PIN.

If you've ever noticed, typical credit card rewards cap out at 1.5%-2% for most cards; or 1% on most transactions for cards with 5% rotating categories, with the 5% being capped at $6,000 in spend per year. Looking at those percentages, one would normally assume the rewards are directly paid for by interchange fees while the interest and other fees go towards profits. Most rewards credit cards, especially AMEX, Visa Signature, and World Elite/World MasterCards have interchange fees in the mid-3% range