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  • May 19, 2009 at 9:45 AM #402657
    SanDiegoDave
    Participant

    I’m a pay-in-full every month guy too. If any of my cards start pulling this stuff I won’t use them. It’s that simple. And what most people don’t understand is: that is EXACTLY what the credit card companies want.

    Pay-in-full customers are known in the CC industry as “deadbeats”. “What’s that?!?” you ask. Yeah, I saw a documentary on these guys a few years back. The ones who carry heavy balances, pay late, etc. are the most profitable customers that CC companies have. Unless the user completely defaults on the debt, the true “deadbeat” is the one who pays in full every month because the CC company only makes money on the merchant fee. That’s why they refer to pay-in-full people as “deadbeats”.

    This move is risky on the part of the industry though. It’s classic game theory. If they all go to a “no grace period model + annual fee model”, then they all make out. But if just one of them pulls back and keeps the grace periods and no fees, then the savvy users like me will gravitate to those other cards.

    May 19, 2009 at 9:52 AM #401976
    donaldduckmoore
    Participant

    It is funny to realize how silly these companies are. If they are really going to do that, a lot of us will just cut the card and use cash. Why keep troubles in our wallets. By then, they don’t even have a share of the charges to the merchants. See, our banks are a total greedy, lousy, bastards. Let them go down.

    May 19, 2009 at 9:52 AM #402228
    donaldduckmoore
    Participant

    It is funny to realize how silly these companies are. If they are really going to do that, a lot of us will just cut the card and use cash. Why keep troubles in our wallets. By then, they don’t even have a share of the charges to the merchants. See, our banks are a total greedy, lousy, bastards. Let them go down.

    May 19, 2009 at 9:52 AM #402460
    donaldduckmoore
    Participant

    It is funny to realize how silly these companies are. If they are really going to do that, a lot of us will just cut the card and use cash. Why keep troubles in our wallets. By then, they don’t even have a share of the charges to the merchants. See, our banks are a total greedy, lousy, bastards. Let them go down.

    May 19, 2009 at 9:52 AM #402519
    donaldduckmoore
    Participant

    It is funny to realize how silly these companies are. If they are really going to do that, a lot of us will just cut the card and use cash. Why keep troubles in our wallets. By then, they don’t even have a share of the charges to the merchants. See, our banks are a total greedy, lousy, bastards. Let them go down.

    May 19, 2009 at 9:52 AM #402667
    donaldduckmoore
    Participant

    It is funny to realize how silly these companies are. If they are really going to do that, a lot of us will just cut the card and use cash. Why keep troubles in our wallets. By then, they don’t even have a share of the charges to the merchants. See, our banks are a total greedy, lousy, bastards. Let them go down.

    May 19, 2009 at 10:12 AM #402006
    Anonymous
    Guest

    [quote=meadandale]I could care less. I SAVE money and haven’t used a credit card in years.[/quote]

    Many (probably most) of those who pay off their cards every month also save money. Their use of credit cards has little to do with their savings rate.

    The “Sterling Payers” participate in a win/win/win arrangement: The consumer gets the convenience and safety of credit cards (don’t have to bother with cash, itemized monthly statement, etc). The vendor gets convenience and lowered accounting costs, increased sales opportunities (less cash to handle, etc.) The bank gets a small fee for providing the service. It’s a private arrangement that benefits everyone who participates.

    The aggravating part (for those who understood the gist of the article), is that a positive business arrangement is threatened because of government price controls.

    This may never materialize, as it will ripple out to other aspects of commerce and there will be resistance from many directions. For example: Most people who are good credit risks can only prove this because they have a track record of responsible credit card use (and thus a high credit score.) If these folks decide to go back to cash/checks/debit, credit reporting will become less reliable, as there won’t be as much data available. It could also impact online sales, where cash is not an option…

    Econ 101: Government imposed price controls always have negative consequences.

    May 19, 2009 at 10:12 AM #402258
    Anonymous
    Guest

    [quote=meadandale]I could care less. I SAVE money and haven’t used a credit card in years.[/quote]

    Many (probably most) of those who pay off their cards every month also save money. Their use of credit cards has little to do with their savings rate.

    The “Sterling Payers” participate in a win/win/win arrangement: The consumer gets the convenience and safety of credit cards (don’t have to bother with cash, itemized monthly statement, etc). The vendor gets convenience and lowered accounting costs, increased sales opportunities (less cash to handle, etc.) The bank gets a small fee for providing the service. It’s a private arrangement that benefits everyone who participates.

    The aggravating part (for those who understood the gist of the article), is that a positive business arrangement is threatened because of government price controls.

    This may never materialize, as it will ripple out to other aspects of commerce and there will be resistance from many directions. For example: Most people who are good credit risks can only prove this because they have a track record of responsible credit card use (and thus a high credit score.) If these folks decide to go back to cash/checks/debit, credit reporting will become less reliable, as there won’t be as much data available. It could also impact online sales, where cash is not an option…

    Econ 101: Government imposed price controls always have negative consequences.

    May 19, 2009 at 10:12 AM #402490
    Anonymous
    Guest

    [quote=meadandale]I could care less. I SAVE money and haven’t used a credit card in years.[/quote]

    Many (probably most) of those who pay off their cards every month also save money. Their use of credit cards has little to do with their savings rate.

    The “Sterling Payers” participate in a win/win/win arrangement: The consumer gets the convenience and safety of credit cards (don’t have to bother with cash, itemized monthly statement, etc). The vendor gets convenience and lowered accounting costs, increased sales opportunities (less cash to handle, etc.) The bank gets a small fee for providing the service. It’s a private arrangement that benefits everyone who participates.

    The aggravating part (for those who understood the gist of the article), is that a positive business arrangement is threatened because of government price controls.

    This may never materialize, as it will ripple out to other aspects of commerce and there will be resistance from many directions. For example: Most people who are good credit risks can only prove this because they have a track record of responsible credit card use (and thus a high credit score.) If these folks decide to go back to cash/checks/debit, credit reporting will become less reliable, as there won’t be as much data available. It could also impact online sales, where cash is not an option…

    Econ 101: Government imposed price controls always have negative consequences.

    May 19, 2009 at 10:12 AM #402549
    Anonymous
    Guest

    [quote=meadandale]I could care less. I SAVE money and haven’t used a credit card in years.[/quote]

    Many (probably most) of those who pay off their cards every month also save money. Their use of credit cards has little to do with their savings rate.

    The “Sterling Payers” participate in a win/win/win arrangement: The consumer gets the convenience and safety of credit cards (don’t have to bother with cash, itemized monthly statement, etc). The vendor gets convenience and lowered accounting costs, increased sales opportunities (less cash to handle, etc.) The bank gets a small fee for providing the service. It’s a private arrangement that benefits everyone who participates.

    The aggravating part (for those who understood the gist of the article), is that a positive business arrangement is threatened because of government price controls.

    This may never materialize, as it will ripple out to other aspects of commerce and there will be resistance from many directions. For example: Most people who are good credit risks can only prove this because they have a track record of responsible credit card use (and thus a high credit score.) If these folks decide to go back to cash/checks/debit, credit reporting will become less reliable, as there won’t be as much data available. It could also impact online sales, where cash is not an option…

    Econ 101: Government imposed price controls always have negative consequences.

    May 19, 2009 at 10:12 AM #402697
    Anonymous
    Guest

    [quote=meadandale]I could care less. I SAVE money and haven’t used a credit card in years.[/quote]

    Many (probably most) of those who pay off their cards every month also save money. Their use of credit cards has little to do with their savings rate.

    The “Sterling Payers” participate in a win/win/win arrangement: The consumer gets the convenience and safety of credit cards (don’t have to bother with cash, itemized monthly statement, etc). The vendor gets convenience and lowered accounting costs, increased sales opportunities (less cash to handle, etc.) The bank gets a small fee for providing the service. It’s a private arrangement that benefits everyone who participates.

    The aggravating part (for those who understood the gist of the article), is that a positive business arrangement is threatened because of government price controls.

    This may never materialize, as it will ripple out to other aspects of commerce and there will be resistance from many directions. For example: Most people who are good credit risks can only prove this because they have a track record of responsible credit card use (and thus a high credit score.) If these folks decide to go back to cash/checks/debit, credit reporting will become less reliable, as there won’t be as much data available. It could also impact online sales, where cash is not an option…

    Econ 101: Government imposed price controls always have negative consequences.

    May 19, 2009 at 10:17 AM #402011
    UCGal
    Participant

    Add me to the group of pay-in-full customers that will simply switch back to cash.

    I’m not that upset about the rewards programs… but I will not pay an annual fee or interest from day one. I’ll pay cash and use my debit/visa card for anything that requires a CC (like renting cars or online purchases.)

    It will be a bit more hassle… But it’s not that bad to pay cash.

    May 19, 2009 at 10:17 AM #402263
    UCGal
    Participant

    Add me to the group of pay-in-full customers that will simply switch back to cash.

    I’m not that upset about the rewards programs… but I will not pay an annual fee or interest from day one. I’ll pay cash and use my debit/visa card for anything that requires a CC (like renting cars or online purchases.)

    It will be a bit more hassle… But it’s not that bad to pay cash.

    May 19, 2009 at 10:17 AM #402495
    UCGal
    Participant

    Add me to the group of pay-in-full customers that will simply switch back to cash.

    I’m not that upset about the rewards programs… but I will not pay an annual fee or interest from day one. I’ll pay cash and use my debit/visa card for anything that requires a CC (like renting cars or online purchases.)

    It will be a bit more hassle… But it’s not that bad to pay cash.

    May 19, 2009 at 10:17 AM #402554
    UCGal
    Participant

    Add me to the group of pay-in-full customers that will simply switch back to cash.

    I’m not that upset about the rewards programs… but I will not pay an annual fee or interest from day one. I’ll pay cash and use my debit/visa card for anything that requires a CC (like renting cars or online purchases.)

    It will be a bit more hassle… But it’s not that bad to pay cash.

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