Preferred method of payment

[say1988]

I went through a bit of a hassle a while back to get a credit card because it would be free of fees. I thought it would be free of fees for the merchants too, which was one of the main reasons why I got it... It now seems like the merchants are being screwed and everyone else are getting points and free trips on their credit cards.

I'll need to take another look at this, but there seems to be little reason to use a credit card instead of a debit card, unless you really know how to take advantage of it.

Credit cards do cost the retailer money to use (the amount varied by card up to a few percent of the transaction, with AmEx being most expensive). It can be expensive, but if you have a business where consumers want to delay payment (and there are valid reasons to do so) it grants the retailer immediate payment and no risk (as opposed to the retailer granting credit themselves where they bear the risk and have to wait for payment).
And often it was just simpler. At the moving company we requested credit card because we could put a hold on the funds before the move, but only take payment afterwards once all charges have been finalized. In addition we had people paying over the phone using their credit cards.

Yeah, using a credit card is often to your advantage and the retailer's disadvantage, but retailers do have potential benefits to the cards as well.And most places already factor credit card fees into their pricing, so unless you get a cash discount you are probably paying for someone else to benefit from their credit card when you pay in cash.

 

[illram]

Well, you lose out in the form of higher prices merchants have to charge to cover the cut credit card companies take (which is even more lately, with the push to World cards) - hence why I pay cash anytime a merchant is willing to give me a cash discount.

I only ever see that at gas stations. And in CA (and 9 other big states, such as Texas and NY) its illegal to pass CC surcharges onto a CC purchaser. Besides, it would be bad business for a major retailer to do so for a variety of reasons. (For one, people spend more with CC's at stores.)

Some small stores, usually food or conveniences stores, do have a minimum, but that is for debit as well and that is rarely an issue for me. (I have a credit union check card that refunds any ATM fees I incur.)

I went through a bit of a hassle a while back to get a credit card because it would be free of fees. I thought it would be free of fees for the merchants too, which was one of the main reasons why I got it... It now seems like the merchants are being screwed and everyone else are getting points and free trips on their credit cards.

I'll need to take another look at this, but there seems to be little reason to use a credit card instead of a debit card, unless you really know how to take advantage of it.

If you find a card with no fee and rewards that fit your spending habits, all you need to do is ensure you're paying your bill on time every month in order to basically rack up free money. It's usually a tiny amount of money but it's better than nothing. For instance I have a MasterCard CC that gives me 1.5% on everything, and they just cut me a check whenever. (No points I need to redeem, etc.) Some cards offer more for some things and less for others, if that fits your spending habits more. This is in addition to the easiness of MasterCard or Visa warranty/insurance/fraud protection policies which basically cover everything and eliminate the need for retailer provided plans, e.g., car rental insurance, etc.

 

[Zelig]

Oh, I almost never see it explicitly, but any mom-and-pop store where you're able to negotiate price in the first place is usually happy to knock off a few extra dollars if you pay cash. (I suspect some of them do it by skimping out on taxes for cash purchases.)

 

[illram]

I definitely notice some small shops around here only take cash, probably for the reasons you said. Also vacation rental people, who are usually folks I find on VRBO.