Why would B&H promote this??

Started 2 months ago | Discussions thread
Marty4650
Marty4650 Forum Pro • Posts: 15,383
It is a great deal for everyone
10

No one will force you to use their credit card

I know from personal experience that B&H is perfectly willing to accept cash or checks. They will even accept postal money orders or traveler's checks. Or you could use some other credit or debit card. Absolutely no one is forcing you to use their own credit card with that "alarmingly high" interest rate.

But if you do use it you will get a full refund for the sales tax portion of your purchase. But if you fail to pay your bill in full, then you will be paying that higher interest rate. It is a decision for you to make.

This works out to be a great deal for anyone who normally buys things and pays in full, and it really isn't any worse if you want to buy things by paying with monthly installments. And even at that, it isn't a terrible deal.

Even the installment buyers end up paying just a little bit less, because they still get the tax rebate, even if they pay using installments. That 29.9% rate may sound like usury to you, but the current average credit card APR is around 24%. The sales tax rebate is probably more than the additional interest cost.

For example....

IF you pay in full:

Paying in cash or check for a $1,000 item at B&H will cost you:

  • $1,000
  • $80 more for sales tax if your local rate is 8%
  • grand total = $1,080

Paying using your own bank credit card:

  • $1,000
  • $80 more for sales tax if your local rate is 8%
  • grand total = $1,080

Paying using B&H's credit card:

  • $1,000
  • $80 more for sales tax if your local rate is 8%
  • -$80 instant tax rebate
  • grand total = $1,000

If you want to pay with monthly installments, paying it off in 12 months:

Paying using your own bank credit card:

  • $1,000
  • $80 more for sales tax if your local rate is 8%
  • $240 more if your credit card charges a 24% rate (the current national average)
  • grand total = $1,320

Paying using B&H's credit card:

  • $1,000
  • $80 more for sales tax if your local rate is 8%
  • -$80 instant tax rebate
  • $299 more if your their 29.9% APR rate
  • grand total = $1,299

Bottom line... you SAVE the cost of the tax if you use their card and pay in full. And if you are an installment buyer, you still save a little bit ($21, to be exact) if you use their card rather than your own credit card with a "lower interest rate."

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tko
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