I always wondered why

shadowcast
shadowcast Posts: 2,384
edited May 2010 in A Moving Train
in order me to get rewards points I have to choose credit instead of debit (Chase) when using my debit card for a transaction. Pasted is the paragraph that I had clarity.

"Under current practice, a business that accepts major credit cards signs agreements with the card companies to pay a percentage of each transaction, usually about 2 percent to 3 percent. But credit card charges cost more to process than swipes with a debit card."

http://news.yahoo.com/s/ap/us_financial_overhaul
Post edited by Unknown User on

Comments

  • achildofthe70s
    achildofthe70s Posts: 73
    I doubt they will give points if they are forced to charge lower fees per transaction.
  • shadowcast
    shadowcast Posts: 2,384
    achildofthe70s wrote:
    I doubt they will give points if they are forced to charge lower fees per transaction.

    Good point instead of getting a Sony DVD player we will get Beta.
  • dustinpardue
    dustinpardue Las Vegas, NV Posts: 1,829
    it is an incentive for you to process as credit because it is more profitable to the issuer and the processor because they charge the acceptor a percentage of the transaction as to where the acceptor normally pays a flat rate + interchange for debit.
    "All I Ever Knew" available now in print and digital formats at Amazon, Barnes & Noble, and iBooks.
  • theoceansmademe
    theoceansmademe Posts: 1,132
    yes, the processing fees ad up quickly for business owners.

    American Express has (or did) rate for retailers. The restaurant I worked at would only put out visa bill holders because the rate was half that of AMEX.

    Along the same lines, I noticed Capital One running a double points credit card. I am wondering if the cost of rewards has double as well?

    At one point I was using a cap one for airline miles until I noticed their flights were double the miles of having a United card.
  • unsung
    unsung I stopped by on March 7 2024. First time in many years, had to update payment info. Hope all is well. Politicians suck. Bye. Posts: 9,487
    I always run them as credit simply because it is too easy for scammers if I enter my PIN.

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