Self Serve Fuel Warning

On Tue, 30 May 2006 13:43:47 GMT, "Jay Honeck"
wrote:

Hmm, let's see. Banks are paying out .25% to 1.25% interest, while charging
5% - 7%. Credit card companies (owned by banks) are charging upwards of
18%.

Sounds like a pretty good return on that float, to me...

Not at all. The difference between paying out .25 percent and charging
5% is 4.75. The different between not paying out .25 percent and
charging 5% is ... 5%, a difference of only .25%, nothing to get rich
on.



-- all the best, Dan Ford

email: usenet AT danford DOT net

Warbird's Forum: www.warbirdforum.com
Piper Cub Forum: www.pipercubforum.com
In Search of Lost Time: www.readingproust.com

Not at all. The difference between paying out .25 percent and charging
5% is 4.75. The different between not paying out .25 percent and
charging 5% is ... 5%, a difference of only .25%, nothing to get rich
on.

Flawed logic.

The difference between NOT reaping (raping?) the float on preauthorizations,
and *having* it, is 4.75%. (Or more.) Not a bad return on money that
doesn't belong to them in the first place.

Remember, when a purchase is preauth'd on a debit card, YOU don't have the
money (as the customer), nor do I (as the business). That money is in
"limbo" -- where only the bank can use it to their heart's content.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"