Why would B&H promote this??

Started 2 months ago | Discussions thread
WunWegWunDarWun Regular Member • Posts: 410
Re: Why would B&H promote this??

Tom_N wrote:

WunWegWunDarWun wrote:

All the credit card "cash back" programs are based on having some people not pay on time and end up paying interest, the fewer customers they have and the better they are on average paying their CC bills on time the higher the APR would have to be.

Depends on the "cash back" level. Remember that the credit card companies get several percent of each sale even if you never carry a balance.

For instance, suppose that you do all of your grocery shopping with cash or a debit card. A card issuer offers a "1% cash back" card to get you shop with their credit card, instead. It might be worth it to them to give up 1/3 of the merchant fee on grocery sales in order to get the other 2/3 (2% of your grocery spending) they would not otherwise have had.

Perhaps, though that would lead to  margin-eroding competition and financial institutions are not really into that

But yeah part of it would be that B&H would be saving on CC commissions assuming this Payboo thing is either owned by them or offers them lower commissions than the big credit cards.

Post (hide subjects) Posted by
Keyboard shortcuts:
FForum PPrevious NNext WNext unread UUpvote SSubscribe RReply QQuote BBookmark MMy threads
Color scheme? Blue / Yellow