AOPA credit card --- WARNING.

"Jay Honeck" wrote in message
news:Nlspd.150701$R05.147436@attbi_s53...
Kinda timely since PBS's Frontline had a show on credit cards last
Tuesday.
Very eye opening, it seems that a couple of Supreme Court decisions allow
credit card companies to charge whatever interest rate they want and to
raise the interest rate on money already on the balance.
Most of the credit card holders interviewed had never read or didn't
understand the "fine print" in their card contracts.

One lesser known fact about credit card companies is that they will screw
the VENDOR far more readily than they will their customers.

Over the past couple of years we have had a handful of guests with
guaranteed reservations not show up at the inn, who were charged for one
night's stay. Two of them simply called their credit card companies and
disputed the charge -- at which point the credit card company immediately
credited them and charged us back, no questions asked!

It was then up to US to "prove" to VISA that the guest had stayed with
us -- which, of course, they had not. Despite the fact that these
guests insisted on "guaranteed reservations", despite the fact that we had
pre-authorized their stay on their credit card, despite the fact that we
had mailed post cards to their home, reminding them of their
reservation -- and despite the fact that we followed VISA's own procedures
for no-shows to the letter -- we were totally helpless, and had to eat the
bill. No amount of documentation or phone calls mattered to VISA.

THAT is the real credit card scandal that is sweeping America right now --
but no one outside of the industry knows (or, quite frankly) cares about
it. But we ALL pay for scumbags like these in the end.

That is unfortunate, but did you really "lose" money? The card companies
make the money from the card holders, not the vendors. If no service was
received then you can't charge. Now this then gets into a discussion of a
"confirmed reservation" rather than a "regular reservation."

I would not go so far as to say it is a scandal or that they are scumbags.
Surely they are inconsiderate, but I think you overstate the case.

Did you have to clean the room when they didn't show up? Did you turn away
other guests? What you discuss is all part of the service industry. When
you are in that business you (hopefully) understand that you have to deal
with people and you cannot always choose your clients, though I suppose that
would be nice. Until that day comes, i am afraid you will have to deal with
all types of people and with the standard business practices.


--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

"Dick" wrote in message ...

That is unfortunate, but did you really "lose" money? The card companies
make the money from the card holders, not the vendors.

You couldn't be more wrong. Credit card companies charge the 'vendors'
a fee for each and every transaction. I fought with VISA for four months
over a disputed charge where they gave credit to the card user and refused
to refund the transaction fee they charged me.
The so-called customer used a credit card to sign up two people for a
conference. I paid the conference center based on a head count that included
him and his wife. I showed VISA the signed contract that put a date limit on
refunds. The customer did not provide any proof that they had ever
cancelled, much less on or before the cancellation date. VISA refused to
honor the charge and left me holding the bag. We no longer accept credit
cards for conference registration. I put most of the blame on the scumbag
deadhead.
Have you never noticed signs near cash registers that deny the use of a
credit card for sales below a minimum purchase? Have you never noticed some
'vendors' will offer a discount to customers that pay cash?

"Casey Wilson" wrote in message
news:z%bqd.2405$wr6.140@trnddc04...

"Dick" wrote in message
...

That is unfortunate, but did you really "lose" money? The card companies
make the money from the card holders, not the vendors.

You couldn't be more wrong. Credit card companies charge the
'vendors' a fee for each and every transaction.

No, you couldn't be more wrong. Vendors choose the prices, consumers hold
the cards. Consumers make the purchases. The fees are passed to the
consumers.

Again, I asked if he actually "lost money" in services or other goods.


I fought with VISA for four months
over a disputed charge where they gave credit to the card user and refused
to refund the transaction fee they charged me.
The so-called customer used a credit card to sign up two people for a
conference. I paid the conference center based on a head count that
included him and his wife. I showed VISA the signed contract that put a
date limit on refunds. The customer did not provide any proof that they
had ever cancelled, much less on or before the cancellation date. VISA
refused to honor the charge and left me holding the bag. We no longer
accept credit cards for conference registration. I put most of the blame
on the scumbag deadhead.
Have you never noticed signs near cash registers that deny the use of
a credit card for sales below a minimum purchase? Have you never noticed
some 'vendors' will offer a discount to customers that pay cash?

That is unfortunate, but did you really "lose" money? The card
companies make the money from the card holders, not the vendors.

You couldn't be more wrong. Credit card companies charge the
'vendors' a fee for each and every transaction.

No, you couldn't be more wrong. Vendors choose the prices, consumers
hold the cards. Consumers make the purchases. The fees are passed to the
consumers.

Actually, the credit card companies dip from both wells, charging consumers
AND vendors.

However, vendors are ALWAYS charged, while consumers are charged only if
they're dumb enough to rack up balances, and pay 22% interest.

Of course, in the end, consumers pay more because of the vendor charges,
too -- but it's not always a 100% pass-through.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

On Wed, 1 Dec 2004 00:52:34 -0500, "Dick" wrote:

No, you couldn't be more wrong. Vendors choose the prices, consumers hold
the cards. Consumers make the purchases. The fees are passed to the
consumers.

In that sense, every cost is passed to the consumer. But in the case
of credit cards, only the guy using the card gets the payback.

After all, if every cost were simply passed to the consumer, why are
United and U.S.Airlines in bankruptcy court?

all the best -- Dan Ford
email: (put Cubdriver in subject line)

Warbird's Forum www.warbirdforum.com
Piper Cub Forum www.pipercubforum.com
the blog www.danford.net

"Cub Driver" wrote

In that sense, every cost is passed to the consumer. But in the case
of credit cards, only the guy using the card gets the payback.

After all, if every cost were simply passed to the consumer, why are
United and U.S.Airlines in bankruptcy court?

all the best -- Dan Ford

Bingo. They are not passing all the costs along, ant that means they are
not charging as much as the service costs. Hard to imagine why they are
losing money.
--
Jim in NC


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On Fri, 3 Dec 2004 06:36:09 -0500, "Morgans"
wrote:


"Cub Driver" wrote

In that sense, every cost is passed to the consumer. But in the case
of credit cards, only the guy using the card gets the payback.

After all, if every cost were simply passed to the consumer, why are
United and U.S.Airlines in bankruptcy court?

all the best -- Dan Ford

Bingo. They are not passing all the costs along, ant that means they are
not charging as much as the service costs. Hard to imagine why they are
losing money.

In competitive businesses, such as airlines, you can't pass along costs
that are related to inefficiencies in the way you do your business. And you
can't pass along costs if those costs are higher than those of a
competitor.


Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA)