I always wondered why

shadowcast

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

achildofthe70s

I doubt they will give points if they are forced to charge lower fees per transaction.

shadowcast

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

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.

theoceansmademe

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

I always run them as credit simply because it is too easy for scammers if I enter my PIN.