Using credit cards to buy everything.

[JoeMoma]

Not to be contrary...

But the whole concept of "Cash Back" is smoke and mirrors.

Business run on costs, expenses, and profits. All this equates to higher hidden costs in the prices of the good or service purchased because the business is charged usually a per-transaction fee in addition to a percentage of the transaction by the CC Company.

That means the aggregate cost of goods and services is higher because the providing business has baked CC transactions into the selling price. It's the cost of doing business.

Now convenience in making the transaction and single point review of charges on a single statement have a worth to the consumer. No doubt, but let's face it we really don't get money back when you think about it. And the overall result is higher purchase prices.

WW
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DISCLAIMER: We also use a low limit (~$1000) for routine purchases and pay it off with no month-to-month interest. That doesn't mean that the "rewards" are free money or that the goods were actually cheaper.

I would love to see businesses be required to add to receipts a separate line item showing electronic payment markup + CC Cost as part of receipts so that consumer actually understood the financial transaction.

For example I recently scheduled renewal of our HVAC maintenance contract. The cost is $200. If I pay by check the cost is $200. However if I pay by credit card the cost is $207 to cover electronic payment.

Most business charge the same whether using a card or cash, so I may as well do what is most convenient me.

 

[Harpy Eagle]

My son is ~34 years old. He never carries cash and I could count on one hand the number of paper checks he's ever written in his life.

WW

my daughter is 29 and about the same. Personally I think I have written maybe 6 checks this year...if that.

I used to have most of my bills come out of my checking account, but now they are all on my AmEx. Flying from Atlanta to Panama City Panama first class spoiled me....I want more miles!

 

[WorldWatcher]

Most business charge the same whether using a card or cash, so I may as well do what is most convenient me.

Of course, so do I. Not disagreeing at all on an individual level.

I'm just pointing out that rewards/cash back are smoke and mirrors as the cost of CC transactions are already baked in. People (for he most part) pay the same whether they pay by cash/check or credit card.

WW

 

[jwoodie]

Cash back is a small price for credit card companies compared with their prospects for 22% interest charges.