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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (27028)	2/23/2005 12:15:44 PM
From: benwood	Read Replies (1) \| Respond to of 110194

Grocery stores held out because (as my QFC statement kept repeating) their met profit margin was typically 1%. The fees charged for the cards varies by the purchase amount (from what I've read) and can vary between 1% and 3.5% (more for the offbeat cards). So those little charge purchases at the supermarket simply cause prices to go up. When my local supermarket began accepting credit cards, a clerk told me they hate to see them because they cost so much more than cash or checks. They preferred debit because it never bounced and had a small fixed fee.

To: Elroy Jetson who wrote (27028)	2/23/2005 1:02:46 PM
From: ild	Read Replies (2) \| Respond to of 110194

<<<Visa card issuers generally charge the merchant 2% for services, then turn around and give you half of their revenue in the form of a 1% rebate.>>> Citi CC gives 5% rebate on gas, supermarket and drugstore purchases and 1% on everything else. ($300 max rebate per year) Chase just recently started offering same terms but added home improvement stores to the list of 5% discount. IMO both Citi and Chase hope that most customers will run a balance. Otherwise I don't see how they are making money. In other words, not only cash customers but mostly balance carrying credit card users subsidise CC users who carry no balances.