Why would B&H promote this??

Started 3 months ago | Discussions
Michael Fryd
Michael Fryd Forum Pro • Posts: 11,431
Re: Why would B&H promote this??
2

WunWegWunDarWun wrote:

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 ?

I don't believe so.  If I wanted that functionality I would use a Debit card on an account with overdraft protection.

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henryp
henryp Veteran Member • Posts: 7,080
Re: It is a great deal for everyone
6

Marty4650 wrote:

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

That nails it. Thank you.

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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:

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 ?

I don't believe so. If I wanted that functionality I would use a Debit card on an account with overdraft protection.

But then you wouldn't enjoy CC cashbacks and other benefits - point is that having people not pay their balance on time or have it larger than can be accommodated by their checking account at the end of the month is an inherent interest of the CC business.

Michael Fryd
Michael Fryd Forum Pro • Posts: 11,431
Re: Why would B&H promote this??
3

WunWegWunDarWun wrote:

Michael Fryd wrote:

WunWegWunDarWun wrote:

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 ?

I don't believe so. If I wanted that functionality I would use a Debit card on an account with overdraft protection.

But then you wouldn't enjoy CC cashbacks and other benefits - point is that having people not pay their balance on time or have it larger than can be accommodated by their checking account at the end of the month is an inherent interest of the CC business.

But I don't need to [ay every day in order to enjoy those benefits.

I can tell Citibank to automatically pull full payment each month from my non-citibank credit card.  I get all the credit card benefits (including cashback), no interest charges (unless I take a cash advance), and the convenience of having the bills automatically paid.

Personally, I prefer to manually initiate the payment each month.  This gives me the opportunity to review the statement and detect fraudulent charges,  erroneous charges, or missing credits.

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Tom_N Forum Pro • Posts: 15,886
Re: Why would B&H promote this??

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 ?

Why would you need to do it that way?

I limit my credit card charges to what I know I can pay in full each month.  Except on the rare occasions when I slip up and accidentally get around to paying the bill a day late, the result is that there is no interest.

If I was contemplating a major purchase, and didn't know whether my checking account had (or would have) sufficient funds, I'd check it before committing to the order.  ("No funds" == "don't order that $5K+ camera")  Better than trying to make the purchase, and having the payment method bounce for lack of funds!

Doug J Forum Pro • Posts: 10,279
Re: Why would B&H promote this??

WunWegWunDarWun wrote:

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 ?

Naturally it's in the issuing bank's interest for customers to maintain a balance. I still would not authorize automatic deductions. I review each transaction on statements to ensure there is no fraud, suspicious activity, erroneous charges and any expected credits are applied.

I also do banking & bill paying online so there is no risk of a check being lost in the mail,  someone keying a transaction into the wrong account, excessive delays, etc.

Cheers,
Doug

tko Forum Pro • Posts: 12,908
something for free to the smart ones
2

No company does anything for free. Now you know how they pay for the sales taxes. Some will forget or can't make their payment. The fees pay for the sales tax on your purchase.

Remember to pay up and its a good deal.

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OP Timzee Senior Member • Posts: 1,052
Re: It is a great deal for everyone

Marty4650 wrote:

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."

Hi Marty,

Thanks for the details-- details I'm well aware of the details having done the same math a number of times myself to demonstrate to others what they actually pay if running a balance on their cards. It's even more alarming if you calculate how much it would cost to ONLY make the minimum payment until paid off:

It will take you 109 months to pay off your debt, if you make minimum monthly payments on a balance of $1000.00 with a 29.99% APR. In that time, you will pay $1811.19 in interest charges

https://www.creditcards.com/calculators/minimum-payment/

LIke many others who responded, I never pay a cent in interest charges as all my credit cards are linked with auto payments at my bank which pays the full amount due every cycle.

And yes, I can appreciate the situation B&H is in what with the recent sales tax changes and no one is forced to use this card. At the same time, as a business with such a good reputation hooking up with a cc company that charges a 29.99 APR on one's balance if not paid in full??

As an aside, I  think someone mentioned the role digital currency might play in the future when it comes to making purchases. Might be a ways off yet but I can only hope that however it does play out it will bring today's mega banks to their knees. To the benefit of consumers as well as businesses like B&H. 

Marek M Contributing Member • Posts: 960
Re: It is a great deal for everyone
2

henryp wrote:

Marty4650 wrote:

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

That nails it. Thank you.

No need for that.

To me , BH is a vendor, not a bank. If i needed a loan, I would never take it at credit card interest. Why is it even discussed? If you cannot afford something, then it isn't for you. If you can, buy it and pay for it.

CMCM Senior Member • Posts: 4,406
Re: Why would B&H promote this??
1

Tom_N wrote:

lilBuddha wrote:

  • They are paying your taxes.

I believe that "merchant pays your tax; offers 'tax-free' purchases" may run afoul of laws in some states. So this is an instant credit that just happens to match the amount of the tax. They are still collecting the actual tax from you, and forwarding your tax payment to the state.

Yes...the merchant pays the tax on the original product amount, then "discounts" the tax amount back to you disguised as paying your tax.  The states still get their money.   The way they have structured it, they still charge the required amount per the product manufacturer, the state gets its tax, and B&H loses a bit of their profit from those who use the card.  Companies do sales like this all the time, claiming they are paying your sales tax.    But it's less "discount" than a 10 or 15% off type discount!

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WunWegWunDarWun Regular Member • Posts: 410
Re: It is a great deal for everyone
2

Marek M wrote:

henryp wrote:

Marty4650 wrote:

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

That nails it. Thank you.

No need for that.

To me , BH is a vendor, not a bank. If i needed a loan, I would never take it at credit card interest. Why is it even discussed? If you cannot afford something, then it isn't for you. If you can, buy it and pay for it.

Because in principle you can pay less for it and not take a credit card interest if you pay it in time. The fact this is only possible due to other people not doing it for one reason or another should give one pause though.

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:

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 ?

Naturally it's in the issuing bank's interest for customers to maintain a balance. I still would not authorize automatic deductions. I review each transaction on statements to ensure there is no fraud, suspicious activity, erroneous charges and any expected credits are applied.

I also do banking & bill paying online so there is no risk of a check being lost in the mail, someone keying a transaction into the wrong account, excessive delays, etc.

Cheers,
Doug

What if you buy a $10k worth of gear for a wildlife photography setup, two weeks later when the billing statements arrives you are in the middle of Tanzania without an Internet connection or with an Internet connection which your bank does not let you login from because their "AI" cyber defense system finds a Tanzanian IP suspicious.

CMCM Senior Member • Posts: 4,406
Re: Why would B&H promote this??
2

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

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 ?

Naturally it's in the issuing bank's interest for customers to maintain a balance. I still would not authorize automatic deductions. I review each transaction on statements to ensure there is no fraud, suspicious activity, erroneous charges and any expected credits are applied.

I also do banking & bill paying online so there is no risk of a check being lost in the mail, someone keying a transaction into the wrong account, excessive delays, etc.

Cheers,
Doug

What if you buy a $10k worth of gear for a wildlife photography setup, two weeks later when the billing statements arrives you are in the middle of Tanzania without an Internet connection or with an Internet connection which your bank does not let you login from because their "AI" cyber defense system finds a Tanzanian IP suspicious.

Pay the bill online immediately and problem solved.

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OP Timzee Senior Member • Posts: 1,052
Re: It is a great deal for everyone

Marek M wrote:

If you cannot afford something, then it isn't for you. If you can, buy it and pay for it.

Hey, what are you trying to do-- put banks out of business?!?

But seriously, while no one can dispute that logic. However it just doesn't work that way in the real world for a lot of folks for a wide variety of reasons:

Credit card balances carried from month to month continue to inch up, reaching $423.8 billion in early 2019, according to NerdWallet’s annual analysis of U.S. household debt. That’s an increase of almost 5% over last year. And for Americans carrying that debt, the impact is significant.

The average U.S. household with credit card debt has an estimated $6,7411 in revolving balances, or balances carried from one month to the next, the analysis found. This pernicious type of debt, which often comes with high interest rates that make it a challenge to pay off, can feel inescapable. About 1 in 11 (9%) Americans who have credit card debt say they don’t think they will ever be completely free of credit card debt, according to a NerdWallet survey conducted by The Harris Poll.

https://www.nerdwallet.com/blog/average-credit-card-debt-household/

Jonsi
Jonsi Senior Member • Posts: 4,083
Re: Why would B&H promote this??

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

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 ?

Naturally it's in the issuing bank's interest for customers to maintain a balance. I still would not authorize automatic deductions. I review each transaction on statements to ensure there is no fraud, suspicious activity, erroneous charges and any expected credits are applied.

I also do banking & bill paying online so there is no risk of a check being lost in the mail, someone keying a transaction into the wrong account, excessive delays, etc.

Cheers,
Doug

What if you buy a $10k worth of gear for a wildlife photography setup, two weeks later when the billing statements arrives you are in the middle of Tanzania without an Internet connection or with an Internet connection which your bank does not let you login from because their "AI" cyber defense system finds a Tanzanian IP suspicious.

Preplan.

Or call them.

Though I don't know why you wouldn't just connect through a VPN.

Doug J Forum Pro • Posts: 10,279
Re: Why would B&H promote this??
1

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

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 ?

Naturally it's in the issuing bank's interest for customers to maintain a balance. I still would not authorize automatic deductions. I review each transaction on statements to ensure there is no fraud, suspicious activity, erroneous charges and any expected credits are applied.

I also do banking & bill paying online so there is no risk of a check being lost in the mail, someone keying a transaction into the wrong account, excessive delays, etc.

Cheers,
Doug

What if you buy a $10k worth of gear for a wildlife photography setup, two weeks later when the billing statements arrives you are in the middle of Tanzania without an Internet connection or with an Internet connection which your bank does not let you login from because their "AI" cyber defense system finds a Tanzanian IP suspicious.

It's certainly possible to come up with scenarios that make this difficult and are unrealistic for 99.9% of the customers.

To answer the question, one should plan ahead. In the past, I've occasionally prepaid estimated expenses before taking an extended trip and review the account when I'm home.

Next question...

Cheers,
Doug

Marek M Contributing Member • Posts: 960
Re: It is a great deal for everyone
1

Timzee wrote:

Marek M wrote:

If you cannot afford something, then it isn't for you. If you can, buy it and pay for it.

Hey, what are you trying to do-- put banks out of business?!?

But seriously, while no one can dispute that logic. However it just doesn't work that way in the real world for a lot of folks for a wide variety of reasons:

Credit card balances carried from month to month continue to inch up, reaching $423.8 billion in early 2019, according to NerdWallet’s annual analysis of U.S. household debt. That’s an increase of almost 5% over last year. And for Americans carrying that debt, the impact is significant.

The average U.S. household with credit card debt has an estimated $6,7411 in revolving balances, or balances carried from one month to the next, the analysis found. This pernicious type of debt, which often comes with high interest rates that make it a challenge to pay off, can feel inescapable. About 1 in 11 (9%) Americans who have credit card debt say they don’t think they will ever be completely free of credit card debt, according to a NerdWallet survey conducted by The Harris Poll.

https://www.nerdwallet.com/blog/average-credit-card-debt-household/

That is turning the argument upside down.

Simply because many Americans carry the debt ( or : are irresponsible fiscally), credit card companies should lower their interest? I bet that the default rate on those payments is high.

Credit card companies should become restrictive in who do they issue credit cards to.

In some countries, your credit card limit is tied to your bank balance.

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

Jonsi wrote:

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

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 ?

Naturally it's in the issuing bank's interest for customers to maintain a balance. I still would not authorize automatic deductions. I review each transaction on statements to ensure there is no fraud, suspicious activity, erroneous charges and any expected credits are applied.

I also do banking & bill paying online so there is no risk of a check being lost in the mail, someone keying a transaction into the wrong account, excessive delays, etc.

Cheers,
Doug

What if you buy a $10k worth of gear for a wildlife photography setup, two weeks later when the billing statements arrives you are in the middle of Tanzania without an Internet connection or with an Internet connection which your bank does not let you login from because their "AI" cyber defense system finds a Tanzanian IP suspicious.

Preplan.

Or call them.

Though I don't know why you wouldn't just connect through a VPN.

mmm... blocked by Tanzanian government under emergency counter-poaching powers ?

WunWegWunDarWun Regular Member • Posts: 410
Re: It is a great deal for everyone

Marek M wrote:

Timzee wrote:

Marek M wrote:

If you cannot afford something, then it isn't for you. If you can, buy it and pay for it.

Hey, what are you trying to do-- put banks out of business?!?

But seriously, while no one can dispute that logic. However it just doesn't work that way in the real world for a lot of folks for a wide variety of reasons:

Credit card balances carried from month to month continue to inch up, reaching $423.8 billion in early 2019, according to NerdWallet’s annual analysis of U.S. household debt. That’s an increase of almost 5% over last year. And for Americans carrying that debt, the impact is significant.

The average U.S. household with credit card debt has an estimated $6,7411 in revolving balances, or balances carried from one month to the next, the analysis found. This pernicious type of debt, which often comes with high interest rates that make it a challenge to pay off, can feel inescapable. About 1 in 11 (9%) Americans who have credit card debt say they don’t think they will ever be completely free of credit card debt, according to a NerdWallet survey conducted by The Harris Poll.

https://www.nerdwallet.com/blog/average-credit-card-debt-household/

That is turning the argument upside down.

Simply because many Americans carry the debt ( or : are irresponsible fiscally), credit card companies should lower their interest? I bet that the default rate on those payments is high.

Credit card companies should become restrictive in who do they issue credit cards to.

They are, they won't issue it to people who can't be relied upon to be paying the interest should they incur it indefinitely into the future.

In some countries, your credit card limit is tied to your bank balance.

Jonsi
Jonsi Senior Member • Posts: 4,083
Re: Why would B&H promote this??
1

WunWegWunDarWun wrote:

Jonsi wrote:

WunWegWunDarWun wrote:

Doug J wrote:

WunWegWunDarWun wrote:

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 ?

Naturally it's in the issuing bank's interest for customers to maintain a balance. I still would not authorize automatic deductions. I review each transaction on statements to ensure there is no fraud, suspicious activity, erroneous charges and any expected credits are applied.

I also do banking & bill paying online so there is no risk of a check being lost in the mail, someone keying a transaction into the wrong account, excessive delays, etc.

Cheers,
Doug

What if you buy a $10k worth of gear for a wildlife photography setup, two weeks later when the billing statements arrives you are in the middle of Tanzania without an Internet connection or with an Internet connection which your bank does not let you login from because their "AI" cyber defense system finds a Tanzanian IP suspicious.

Preplan.

Or call them.

Though I don't know why you wouldn't just connect through a VPN.

mmm... blocked by Tanzanian government under emergency counter-poaching powers ?

Then stop poaching.

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