Are Cash Back Debit Cards OK?
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- Опубліковано 20 гру 2023
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You're going to pay one way another (cash, debit, credit).
Bills, groceries, utilities, etc...
Why not get some cash back. Win-win for companies, merchants and customers.
Its a win for the credit card companies, a win-lose for merchants, and a loss for the consumer.
The higher the cash back% or "rewards", the more the credit card companies charge the merchant a sa transaction fee. The merchant then just puts that cost back on the consumer. A popular entree at your favorite restaurant that could have been $10 is now $11.
There's no free lunch. You're not actually winning.
@@willw1561totally agree with what you’re saying but if you’re a merchant the credit card fees provide a valuable service to you making it easier to transact. Suddenly you don’t need to manage near as much physical cash on premises, deal with theft, and pay to have an Armored Truck come or an employee drop money at the bank. Cash costs money to operate and so the merchant fees are not necessarily a “cost”
@@willw1561thats how society is. Why not take advantage of that and get the cash back? 99% of the time you’re paying the same price regardless how you pay. It’s not like consumers stand a chance for a massive systemic change against credit card companies
@@willw1561 It is a lose lose for people who use cash. People who use credit cards with rewards break even.
The restaurant charges the same price in most cases regardless of cash or card.
@@willw1561so in your example if I were to pay cash at let’s say Olive Garden , would they charge me $10 or $11.
If it’s $11 then why not get some cash back in the process?
I’ve made almost 4K this year just on welcome bonuses. And another 2k on cash back.
I have a trip for work and I open a new business card with a 750.00 welcome bonus after 6k or I buy a needed piece of equipment or tools. All of it’s a wrote off as I’m self employed. I pay off the card after I use it and move in to the next.
Of course I have my staple card that gets 2-5% cash back that I always use but it’s been working so far. As long as they keep giving me offers I keep using em.
The merchant fees for a debit transaction are not the same as a credit transaction. Yes, there is still a fee to the merchant, but it is far less for debit than credit.
They charge the merchant 3%, give you 1% back, still make money and you come back.
That is why small mom pop shops don't take plastic. They have to pay visa mastercard amex discover anywhere 2% to 6% of the transaction.
Cash back in an investment.
The bank invests, say, 2% on you, to make them money.
You spent 100, you receive 2 back. Cool right?
Let's phrase it like this:
The bank invests 2 dollars on you, to make 100.
That's what my ignorance understands.
Watch the full video. Jade have no idea what it is.
No one spends money just to get 1% back. They just loves strawman arguments. If you are going to spend it anyway, why not get cash bank?
Jade thinks prepaid credit cards gives you only a partition of what you put on the card.
The argument is that people end up spending more money than if they weren’t getting the cash bask.
@@BrianMiller1973 That is a strawman agrument.
@jimmymcgill6778 Studies have shown that people spend more with cards than with cash. Of course, that effect will be magnified with the excuse of getting cash back on spending.
The higher the cash back % and/or "rewards", the more the credit card companies charge the merchant. Then the merchant passes those costa onto you. A popular entree at your favorite restaurant that could have been $10 is now $11.
@@jimmymcgill6778No, it is not.