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#321
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On Fri, 3 Dec 2004 06:36:09 -0500, "Morgans"
wrote: "Cub Driver" wrote In that sense, every cost is passed to the consumer. But in the case of credit cards, only the guy using the card gets the payback. After all, if every cost were simply passed to the consumer, why are United and U.S.Airlines in bankruptcy court? all the best -- Dan Ford Bingo. They are not passing all the costs along, ant that means they are not charging as much as the service costs. Hard to imagine why they are losing money. In competitive businesses, such as airlines, you can't pass along costs that are related to inefficiencies in the way you do your business. And you can't pass along costs if those costs are higher than those of a competitor. Ron (EPM) (N5843Q, Mooney M20E) (CP, ASEL, ASES, IA) |
#322
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"Jay Honeck" wrote in message news:oPqrd.121946$V41.104020@attbi_s52...
I say, let me guess, my brother was never here. He says, never saw him before in my life, see you guys next year. So cash buyers are always a little more welcome around here than people with plastic. One thing I've learned from owning three businesses: Don't start lying about stuff like this. Why? a) I'm a bad liar. b) I can't remember which lie I told to whom. So, as much as I despise taxes, I play it straight, my books are clean, and I sleep well at night. Both of them? Yes, it is a good idea to dust your books bookshelfs every now and then. Bryan |
#323
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Chuck wrote:
"Matt Whiting" wrote in message I still don't see how this works as the interest you pay means that you can now have even fewer necessities than if you paid cash for them. You just don't get it, do ya? Of the 3 "luxuries" that I said that I have, only one *might* have been bought on credit and had to pay any interest. That would be the Dell PC. For your information, I did charge that PC, but paid it off with my tax refund 2 months later. I paid 1 or 2 months of interest. Big deal. Dish Network and SBC don't charge any interest that I am aware of. If you will read, I have ONE credit card (Sears, for school clothes, tools, etc) that I am paying interest on. For someone in my financial situation, I don't feel that is all that bad. Ok, I'll bite. If somebody is going to pay interest on one credit card, why choose a Sears Card (now issued by CitiBank), which usually has an APR in excess of 21%(!)? Even doing something silly like a balance transfer to a lower rate card (like one of the many offers that show up offering 0 to 5% APR) would make more sense. Would you stop trying to pry into my personal situation please. Who is "prying?" into anything? You freely posted your financial situation for all to view. |
#324
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Jay Honeck wrote:
Well in my case I don't have a 'real' credit card. I have a debit visa (work just the same). I keep most of my spendable money in checking then use the Visa the same as cash. If I can't afford something then I don't buy it. It does NOT work the same. a) Don't try renting a car. And don't try using to reserve a hotel suite. Most debit cards (unless it's a "dual" debit/credit card) will not work with a preauthorization -- which is what is required to make a guaranteed reservation. Offline debit cards (that is when cards are used without the PIN, i.e. transactions that use the Visa or Mastercard brand network) do support preauthorization. That's a Visa/MC requirement. When the card is charged at the merchant, the amount of sale is preauthorized instantly. On a regular credit card, this just instantly lowers the current available credit amount by the same amount. But on an offline debit card is used, it puts a hold on the funds in the bank account. That means that this amount is unavailable to withdraw, have checks drawn on, etc. even though the money is still in the account as long as the hold exists. This is how Visa/MC guarantees that the money will be available when the charge posts (usually 2-3 days out). The hold goes away when the charge posts (e.g. actual transaction amount is charged to the account) or else it times out (1-2 weeks) if no charge actually posts. Sometimes a preauthorized hold is put on the card without an actual transaction amount known yet just to make sure there will be enough funds available. Examples are pay-at-the-gas-pump transactions (usually $50 is preauthorized before you start pumping), restaurants where an extra amount is pre-authorized in expectation of a tip, hotels (where they preauthorize for guaranteed reservations to make sure the card is valid, and also when you check in to preauthorize some amount for the expected stay and possible incidentals), rental car places etc. Also AOPA preauthorized $1 every six months or so if you have auto-renewal to make sure the card is active. You'll never see that $1 on your statement because they never post the charge. It's important to understand that just because an amount is preauthorized does not necessarily mean that it will post to your account. However it will tie up that amount, either in credit line for a credit card or actual bank funds for a debit card. That is another big disadvantage to using debit cards, especially if it causes you to bounce checks even though there is bank physically in the account but it is effectively locked until the hold expires. By the way, MBNA actually shows you preauthorized charge amounts AND who is making the charge online. Most other credit issuers do not, although you can usually see how much is pre-authorized (held) by taking your credit limit, subtracting known charges and balances, and observing any discrepancy between that difference and the current available credit. (Rounded to the nearest dollar). An "online debit" transaction requires a PIN and uses the ATM/POS networks. Money is debited instantly and there is no preauthorizing then posting later. I think cards that only suport online debit (e.g. no mastercard or visa logo) are much better since if somebody steals it they can't do squat without the PIN. That no-fraud guarantee on MC/Visa debits is nice, but it doesn't help you right away while your checking account's been cleaned out, your checks are bouncing, and your card won't work. Sorry for you if you have automatic overdraft protection from savings too. |
#325
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"Janet" wrote snip a bunch of stuff so I can bitch about somethingg Sometimes a preauthorized hold is put on the card without an actual transaction amount known yet just to make sure there will be enough funds available. Examples are pay-at-the-gas-pump transactions (usually $50 is preauthorized before you start pumping), What is that all about? $50 for gas on a card? That does not even come close for me. My full size work van has a tank that will hold 31.6 gallons of gas, and still be running. With gas at times up to $1.89, I have to let the pump shut off, and then have to start up another charge to finish filling up. Let's get real here, gas station owners of America!Thanks, I feel better now. Required aviation content: I drove that van up to OSH this year, and it would have been cheaper to charter a plane, after buying the gas and a new transmission. (well, almost) :-) -- Jim in NC |
#326
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Morgans wrote:
"Janet" wrote snip a bunch of stuff so I can bitch about somethingg Sometimes a preauthorized hold is put on the card without an actual transaction amount known yet just to make sure there will be enough funds available. Examples are pay-at-the-gas-pump transactions (usually $50 is preauthorized before you start pumping), What is that all about? $50 for gas on a card? That does not even come close for me. My full size work van has a tank that will hold 31.6 gallons of gas, and still be running. With gas at times up to $1.89, I have to let the pump shut off, and then have to start up another charge to finish filling up. Let's get real here, gas station owners of America!Thanks, I feel better now. Increasing that value would mean larger credit/debit preauthorized holds for everybody, including the vast majority of people that fill up with less than $50 at time. Why inconvenience everybody? If you need to pump more, just restart the pump or pay with another method. |
#327
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"Janet" wrote Increasing that value would mean larger credit/debit preauthorized holds for everybody, including the vast majority of people that fill up with less than $50 at time. Why inconvenience everybody? Inconvenience? What? You mean there are people running around filling their tanks with a credit card, that will not have another $10 available on their credit line? I'm not buying it, and neither would you if you thought about it. In the meantime, it costs me, and all others with big tanks another few extra minutes when we fill up. *That* is inconvenience, and I will not go back to a place that has not kept up with the times and made a higher preauthorizations. If you need to pump more, just restart the pump or pay with another method. Rediculous. -- Jim in NC |
#328
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Morgans wrote:
saction amount known yet just to make sure there will be enough funds available. Examples are pay-at-the-gas-pump transactions (usually $50 is preauthorized before you start pumping), Actually, that's WRONG. What they usually do is put through a $1 preauthorization. The $50 limit they put on the pumping is a number that the point of sale determines is the max they will do based on that $1 preauth. |
#329
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Janet wrote:
Morgans wrote: Increasing that value would mean larger credit/debit preauthorized holds for everybody, including the vast majority of people that fill up with less than $50 at time. Why inconvenience everybody? If you need to pump more, just restart the pump or pay with another method. It would if the original premise was true, but in fact, the $50 is an arbitrary limit set by the pump. It has nothing to do with the preauth. |
#330
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On Tue, 7 Dec 2004 23:39:14 -0500, "Morgans"
wrote: Sometimes a preauthorized hold is put on the card without an actual transaction amount known yet just to make sure there will be enough funds available. Examples are pay-at-the-gas-pump transactions (usually $50 is preauthorized before you start pumping), What is that all about? $50 for gas on a card? That does not even come close for me. My full size work van has a tank that will hold 31.6 gallons of gas, and still be running. With gas at times up to $1.89, I have to let the pump shut off, and then have to start up another charge to finish filling up. Let's get real here, gas station owners of America!Thanks, I feel better now. Required aviation content: I drove that van up to OSH this year, and it would have been cheaper to charter a plane, after buying the gas and a new transmission. (well, almost) :-) I'll bet it's because of "Drive off's". People who fill their tanks and split without paying. The higher the gas prices, the more the occurrences, at least around here. One gas station told me about an RV that topped off with 70 gallons, then drove off without paying. Corky Scott |
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