The Financial Collapse of 2001 Unwinding Message Board

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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: elmatador who wrote (2685)	6/30/2019 11:46:36 AM
From: Elroy Jetson	1 Recommendation Recommended By elmatador Read Replies (2) of 13800

Low transaction costs are what makes credit cards so popular, typically costing between 1% to 2.5% of a merchant's sales. For those of us who are not Visa merchants, we usually transfer money from person to person with Google Pay, which is "free" in that usual Google way which monetizes information about us. Our Visa cards and Mastercards cost us nothing while paying a 2.63% to 5.25% cash rebate each time we use them. Our rebate level requires Bank of America "relationship banking" with a minimum of $100k between bank accounts and their affiliated stock broker. Transaction costs are higher for people with bad credit from a history of not paying their bills on time, because they don't qualify for cards which offer cash back, or the most cashback. For some the only way they can obtain a credit card is a "secured card" where the credit limit is equal to the amount of money they have on deposit with the credit card issuer. In much the same way, merchants with bad credit or very infrequent business also pay fees which are much higher than the typical 1% to 2.5%. In a sense, the 75% bonus on cash-back cards we obtain with "relationship banking" are essentially a disguised form of "secured credit cards" as they require us have more than $100k on deposit. Reduce our deposits to $50k and the bonus shrinks to 50%, 25% for a total of $25k in deposits. With less than $25k on deposit the cash-back magically shrink back to 1.5% to 3% just like Cinderella's pumpkin coach. For people with that amount of cash on hand, a flat 2% cash-back on the Fidelity Visa is probably a better deal. . Bitcoin transaction fees have declined from a high of $55 per transaction down to $1.92 recently as "mining" is no longer profitable so millions of surplus bitcoin computers take what ever work they can.

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