AOPA credit card --- WARNING.

"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)