Why would B&H promote this??

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Dennis Forum Pro • Posts: 19,127
Re: Seems pretty simple to me

mamallama wrote:

Dennis wrote:

B&H (and other online retailers) had an edge over brick & mortar stores when they didn't have to charge sales tax. Now they've lost that edge when it comes to fixed-price merchandise. So now they offer you a credit card that gets you an instant credit equal to the amount of sales tax you pay. In return, they get a customer who's more likely to buy from B&H because of that benefit.

This promotion is capitalizing on the emotional upset some B&H customers are having at losing their way to avoid paying state sales tax.

I don't know about emotional upset ... certainly the very real upset to one's wallet. Of course, there are other rewards cards that offer cash back. (Amazon's store card offers 5% cash back and that may be as good as B&H's depending on your state's sales tax rate).

Avoiding state sales tax is apparently that important to some

With savings rates in the 2-3% range, saving 5-8% or more on a purchase is nothing to sneeze at (depending on how much you buy).

- Dennis
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Jonsi
Jonsi Senior Member • Posts: 4,090
Re: Why would B&H promote this??
1

Timzee wrote:

Would I use it? Well, I guess if I was buying an expensive item from their store I'd have to consider it, but at the same time it would leave me with a bitter taste by promoting this "service".

So it's something you admit you might use, but are complaining that they offer it?

It's too bad you don't see how ridiculous your post is.

Doug J Forum Pro • Posts: 10,280
Re: Why would B&H promote this??
4

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

Doug J Forum Pro • Posts: 10,280
Re: Why would B&H promote this??

Timzee wrote:

Spent tens of thousands of dollars over decades at B&H and have never had anything negative to say about them. However when I received my last order from them ($300) there was a card inserted promoting this "Payboo" card that one could use to save sales tax in some instances.

Searched here and found a few discussions related to Payboo and I have to admit it sounded good UNTIL I looked into the terms. The annual Percentage Rate (APR) for
Purchases is 29.99 per cent! Further searches reveals the average APR these days is 17.73% which is high enough, but 30%?!

Now obviously if one pays the balance before the due date they can avoid this ridiculous surcharge, but hey-- I can't imagine why B&H would want to have anything to do with this card.

Would I use it? Well, I guess if I was buying an expensive item from their store I'd have to consider it, but at the same time it would leave me with a bitter taste by promoting this "service".

It is a benefit to those that use it wisely, just pay the balance in total and avoid the interest charges.

Cheers,
Doug

WunWegWunDarWun Regular Member • Posts: 410
Re: Why would B&H promote this??

Doug J wrote:

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

Tom_N Forum Pro • Posts: 15,896
Re: Why would B&H promote this??
3

WunWegWunDarWun wrote:

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

You can use many debit cards in the same way as credit cards.  But credit cards are safer in the sense that they usually have more legal protections, and do not offer fraudsters the account numbers of your personal checking and savings accounts.

Marty4650
Marty4650 Forum Pro • Posts: 15,400
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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WunWegWunDarWun Regular Member • Posts: 410
Re: Why would B&H promote this??

Tom_N wrote:

WunWegWunDarWun wrote:

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

You can use many debit cards in the same way as credit cards. But credit cards are safer in the sense that they usually have more legal protections, and do not offer fraudsters the account numbers of your personal checking and savings accounts.

Yes but can you use credit cards in the same way as debit cards - to have the the sum deducted directly from your checking account balance at the time of purchase  if it is sufficient to cover it or have the transaction rejected if it isn't ?

Marty4650
Marty4650 Forum Pro • Posts: 15,400
Re: Seems pretty simple to me
4

Dennis, you are absolutely right.

People who shop for the lowest credit card interest rates are the people who plan to pay in installments. The people who plan to pay it off in one lump sum don't care what the interest rate is. They use a card for safety and convenience, and not due to a lower interest rate.

Many of us would gladly get a card with a 40% interest rate if they offered a 5% cash back bonus. Because we know that we will never pay ANY interest at all.

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Doug J Forum Pro • Posts: 10,280
Re: Why would B&H promote this??
1

WunWegWunDarWun wrote:

Doug J wrote:

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

I have this option with a couple of accounts, but do not want anyone, anywhere to have the ability to reach into my account and take funds. I want to initiate the transaction. It's easy enough to pay bills electronically from my bank account each month.

Cheers,
Doug

WunWegWunDarWun Regular Member • Posts: 410
Re: Why would B&H promote this??

Doug J wrote:

WunWegWunDarWun wrote:

Doug J wrote:

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

I have this option with a couple of accounts, but do not want anyone, anywhere to have the ability to reach into my account and take funds. I want to initiate the transaction. It's easy enough to pay bills electronically from my bank account each month.

Cheers,
Doug

Do you have this option with credit cards that were not issued by your own bank ?

Doug J Forum Pro • Posts: 10,280
Re: Why would B&H promote this??

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

Doug J wrote:

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

I have this option with a couple of accounts, but do not want anyone, anywhere to have the ability to reach into my account and take funds. I want to initiate the transaction. It's easy enough to pay bills electronically from my bank account each month.

Cheers,
Doug

Do you have this option with credit cards that were not issued by your own bank ?

Whether they do or do not offer this option is irrelevant as I do not have auto payment setup with any accounts, credit card or otherwise, nor will I enable it.

Cheers,
Doug

Michael Fryd
Michael Fryd Forum Pro • Posts: 11,437
Re: Why would B&H promote this??
3

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

Doug J wrote:

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

I have this option with a couple of accounts, but do not want anyone, anywhere to have the ability to reach into my account and take funds. I want to initiate the transaction. It's easy enough to pay bills electronically from my bank account each month.

Cheers,
Doug

Do you have this option with credit cards that were not issued by your own bank ?

Typically yes.

I have a credit card issued by Citibank.  My checking account is with a different bank.  On the Citicard web site I can initiate a payment from my non-citibank checking account to my Citibank credit card account.

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CameraCarl Veteran Member • Posts: 6,613
Re: Why would B&H promote this??
3

Just out of curiosity I googled two major credit card providers in the USA. Their rates were 25.9% and 26.3%. So a rate of 29.9% and the benefit of B&H paying your sales tax for you seems not to be that unreasonable.

Michael Fryd
Michael Fryd Forum Pro • Posts: 11,437
Re: Why would B&H promote this??
4

WunWegWunDarWun wrote:

Tom_N wrote:

WunWegWunDarWun wrote:

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

You can use many debit cards in the same way as credit cards. But credit cards are safer in the sense that they usually have more legal protections, and do not offer fraudsters the account numbers of your personal checking and savings accounts.

Yes but can you use credit cards in the same way as debit cards - to have the the sum deducted directly from your checking account balance at the time of purchase if it is sufficient to cover it or have the transaction rejected if it isn't ?

One of the big advantages of a credit card over a debit card is that with the credit card the funds are not immediately withdrawn from your account. This can make a big difference when there is credit card fraud.

Suppose someone gets your card number and runs up thousands of dollars in fraudulent charges. With a debit card, those funds are immediately withdrawn from your checking account. This can lead to checks and other transactions bouncing. This can be a pain to recover from as you need to convince both the bank and the merchant to reverse the bounced check charges. You also need to contact the bank and convince them to give you the money bank while they investigate the fraud.

With a credit card you merely contest the fraudulent charges. The money is never withdrawn from your account, and your checking account is not in danger of being emptied out.

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Mark B. Forum Pro • Posts: 25,988
So don't get it
2

Timzee wrote:

Spent tens of thousands of dollars over decades at B&H and have never had anything negative to say about them. However when I received my last order from them ($300) there was a card inserted promoting this "Payboo" card that one could use to save sales tax in some instances.

Searched here and found a few discussions related to Payboo and I have to admit it sounded good UNTIL I looked into the terms. The annual Percentage Rate (APR) for
Purchases is 29.99 per cent! Further searches reveals the average APR these days is 17.73% which is high enough, but 30%?!

Now obviously if one pays the balance before the due date they can avoid this ridiculous surcharge, but hey-- I can't imagine why B&H would want to have anything to do with this card.

Would I use it? Well, I guess if I was buying an expensive item from their store I'd have to consider it, but at the same time it would leave me with a bitter taste by promoting this "service".

Just my $.02...

Seems easy to NOT get something that doesn't appeal to you.

henryp
henryp Veteran Member • Posts: 7,082
Re: Why would B&H promote this??

Michael Fryd wrote:

For "promotional purchases" they charge interest from the purchase date, even if you pay each statement in full at the end of the month.

"Promotional" refers to a provision of our finance card. It has no relevance for the Payboo card. Any reference to "promotional? should have been removed for the Payboo FAQ.

-- hide signature --

Henry Posner
B&H Photo-Video

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WunWegWunDarWun Regular Member • Posts: 410
Re: Why would B&H promote this??

Michael Fryd wrote:

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

Doug J wrote:

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

I have this option with a couple of accounts, but do not want anyone, anywhere to have the ability to reach into my account and take funds. I want to initiate the transaction. It's easy enough to pay bills electronically from my bank account each month.

Cheers,
Doug

Do you have this option with credit cards that were not issued by your own bank ?

Typically yes.

I have a credit card issued by Citibank. My checking account is with a different bank. On the Citicard web site I can initiate a payment from my non-citibank checking account to my Citibank credit card account.

Of course you can initiate payment, but can you make it so that the Citibank cards automatically charges its balance at time of purchase from the checking account ?

henryp
henryp Veteran Member • Posts: 7,082
Re: Why wouldn't B&H promote this??
8

Timzee wrote:

Searched here and found a few discussions related to Payboo and I have to admit it sounded good UNTIL I looked into the terms. The annual Percentage Rate (APR) for
Purchases is 29.99 per cent! Further searches reveals the average APR these days is 17.73% which is high enough, but 30%?!

Comparing Visa and MasterCard options to store cards is apples and oranges. For store cards not affiliated with Visa or MasterCard:

Amazon.com Store Card or Amazon Prime Store Card accounts, standard variable purchase APR is 28.24%
Kohl's, Macy's, JC Penney, all in the 29% range
Lord & Taylor is 28%
TJMaxx 28%
Game Stop 28%
Staples 29%
Zales 30%
Big Lots 30%
Apple Card - Variable APRs range up to 24.24% based on creditworthiness. Rates as of March 2019.
Gap - For new accounts: As of 01/01/2019, Variable Purchase APR is 28.24%.
Adorama 29.99%
Newegg 29.99%

If the customer pays the balance in full before the statement due date, the amount of interest paid is $0. Any interest the customer does pay goes to the bank, not the retailer.

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B&H Photo-Video

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WunWegWunDarWun Regular Member • Posts: 410
Re: Why would B&H promote this??

Doug J wrote:

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

Doug J wrote:

Black Elk wrote:

If you are gullible enough to buy in to this then go for it. Trust me, the folks at B&H are very astute, savvy business people and know exactly what they are doing. The credit card company also knows what they are doing. There is no risk at their end and the buyer assumes all of the risk. I do cash only on all of my purchases and paying sales tax is minor compared to the potential results of getting yourself in to a interest rate such as this. Just a thought.

Alternatively, use the card(s), reap the benefits and pay off the total balance when the monthly statement arrives. I've done this for years and have never paid interest. Can't afford to pay off the balance? Don't make the purchase to begin with.

Cheers,
Doug

I guess, but ever thought why these things can't be automatically linked to your checking account to be deducted debit-style the moment they are incurred if you have the funds ?

I have this option with a couple of accounts, but do not want anyone, anywhere to have the ability to reach into my account and take funds. I want to initiate the transaction. It's easy enough to pay bills electronically from my bank account each month.

Cheers,
Doug

Do you have this option with credit cards that were not issued by your own bank ?

Whether they do or do not offer this option is irrelevant as I do not have auto payment setup with any accounts, credit card or otherwise, nor will I enable it.

Cheers,
Doug

I'm not saying you should, but generally the higher the APR on the credit the less incentives the CC company has to have its balances extinguished early - would you feel differently if every transaction had to be approved in real time via text or such ?

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