Thanks for watching PolyMatter this year and see you in 2025! By the way, Nebula now offers the ability to gift memberships at gift.nebula.tv/polymatter Take care and happy holidays!
You by far have the best channel and videos out of everybody on Nebula. The information you show in your videos is top-notch and very well researched and I honestly have no idea how you even figure all this stuff out. I believe I found your channel through real life lore. He was always my favorite until I found your channel. I like the topics you cover a lot more. Thank you my friend
In the UK at least, there is one important benefit of credit cards over debit cards: chargebacks. If a merchant screws you over you can initiate a chargeback and get your money refunded quickly. It is then up to the merchant to prove they provided the goods or services promised. Yes, this can be used maliciously, but it's a useful defence against dishonest companies, big and small. It can also protect you against companies that go bankrupt before delivering you the goods or services as the credit card issuer will refund you and become the creditor. Some debit cards do have similar protections, but generally they have a lower limit of £100, whereas credit cards have no lower limit, and they can be more restrictive in their terms.
I live in EU country, and you can request chargeback for both credit and debit cards here, there's no difference, and I think it's likely similar in the UK (banks might not want you to know about this to convince you to get a credit card).
@@Croz89 Even so, I've never heard of any card having a limit of chargeback requests, whether debit or credit. With some higher tier cards funds will be immediately returned to your account, as bank assumes claim will be decided in your favor instead of waiting for it to be processed in a few weeks/months, but that's a perk of specific bank/card, not related to whether it's debit or credit.
@@mrmarecki1 My debit card (which I only use for withdrawing cash) does have a £100 minimum for chargebacks, and I believe the terms are less favourable than my basic credit card. My credit card also allows for fee free overseas transactions at market exchange rates, which is useful for people who pay in foreign currency when on holiday (obviously not an issue for most people in the EU, and the US because they don't vacation outside their country nearly as much).
10:16 another part about this is that in doing so they convinced visa to introduce a higher tier card, making it so that all Visa interchange fees went up in the process (as you mentioned, you can't charge more for fancier visas). Chase almost single-handedly increased fees for everybody using a Visa just so they could get a slice of this top market pie.
That is not legal in some places. However, I am pretty sure Google loves to participate in every card transaction via Google pay not only because of the related fees, but because of the additional information as well. Perfect marketing tracking tool.
Assuming you're financially responsible (which is a big assumption for some), the end consumer prices already have the fees baked in, so you'd be falling behind to not play the rewards game and get some of it back.
Brazil has law that allows sellers offer cheaper prices if you pay with money. Not all of them offer it as cash at site increase the risk of being robbed and it's another cost to run the business (pay a security company to take the money to the bank).
I think the best regulation would be to just make it mandatory to pass interchange costs on to consumers. The EUs approach of capping interchange is far from perfect and we also have issues. Debit cards are far from ubiquitous in Europe. In Germany for example the main type of card used is the "girocard" which is cheaper than Debit. Nowadays many banks are pushing Debit cards because they offer benefits over giro and because of the higher interchange. A ton of merchants don't accept Debit cards as a result and customers are often frustrated. If costs were just passed on customers would automatically choose the cheapest transaction costs and if they really valued the benefits from more expensive cards they'd pay for them themselves instead of having this weird market where other people subsidise them.
How can you say '"girocard" which is cheaper than Debit', if girocards are literally debit cards? You whole comment makes a lot more sense if replacing every "Debit" with "credit". I've had my credit card denied at a hair salon, saying that they only accept debit cards. I didn't ask why, but the fees are probably the reason. Good thing I always have both cards with me.
@@TheOnlyGeggles Yes girocards are a type of debit cards but when I talk about giro cards in contrast to other debit cards you know what I'm talking about and that's just what they are called. It does not make sense to replace "Debit card" with credit card in my comment because the types of cards gaining popularity in Germany are non-girocard debit cards and not credit cards.
Nothing new or surprising here to me, but a good reminder that you as an individual should be using reward cards and paying off in full every month to minimize your losses to the system discussed in the video. It also has beneficial knock on benefits like pumping up your credit score and the general consumer protections where the company is liable for addressing if your card is stolen or whatever.
Credit cards are bad for local businesses in the US sadly because of the price cashback % which takes away from the sales % of the store. In europe this is more regulated for example and thats why there is no real benefit for credit cards there thats why they dont use credit Cards. Idk how the credit score works compared to other countries because its mostly exclusively a north american model.
Bring back the good old days when local businesses handled customer credit on their own ledger books, gave stamps for cash payers, and managed layaway, which in no way increased their prices.
Instead of calling it "fees", since anyone hate that, they should call it "tarrifs". A lot of people seems to like the idea of being charged extra money when using that word.
This is why the whole of India only uses Google pay, every single roadside shop, every single auto rikshaw driver, everyone has Gpay (including me who's 12 so that I can pay when I go to school every day via auto rikshaw)
I'm from austria. I got a credit card because it is required for some online shopping / booking procedures. Costs me 20€ a year, I don't have any debt on it. I used to be angry at cash-only businesses because I handle most stuff with debit card, but I am starting to understand where they are coming from.
Wtf is with a ton of comments 1 minute ago that all say the same, your videos are a real source of inspiration thing, this feel like ai, also each of them have 2 absolutely random emojis after. Does anyone else think this is fishy
Those are bot comments commenting to build a profile that is supposed to make them look authentic so they aren't detected by any algorithm built to find them.
@GM-xk1nw Bro no I swear I’m not a not! Imp promise I was just genuinely weirded out by seeing the bit comments since I haven’t seen that before. Or who knows maybe every UA-cam comment is a bot who knows?
Credit card rewards are NOT tax free. You get a 1099 for most cash back rewards. Technically redeeming gift cards is still taxable. Basically only redeeming for travel is considered non-taxable
Isn't it a much easier for the store to offer discount when you pay by cash? Instead of charging a fee for the use of credit card and making the customer unhappy, like you said in the video? I live in South America and I get 1% cashback in every transaction. So of course I will use the credit card as much as possible. But some online stores offer 3% discount to pay by cash. Which is very little discount, but 3x more than I get using the credit card, so I simply choose to pay by cash. No need for fight.
How is it possible that despite all those intermediary fees most "global" goods like electronics or brand clothes are cheaper in the US than Europe, even after taking sales tax/VAT differences into account?
@@missouri9949 it will last a long time if the new people don't do something very stupid in the next 4 years. China will not let the Yuan appreciate because they want to keep exporting. And BRICS currency wont be a thing since India will not let China to control its monetary policy.
I started using a credit card and saw my consumption skyrocket, and realized I would stop using it unless a big purchase. Extremely difficult to track expenses. I started to switch to cashback gift cards and not only I get some money back but it is higher than my card and easier to track.
I live in Mexico an I am amazed about the credit card reward system that you guys have. I believe the best cash back in Mexico is at 3% and with certain conditions.
Isn't it a better solution to require that credit card companies disclose their "interchange" rates? That is not anti-corporation. The corporations that can profit off lower interchange rates will benefit from a law like that. It's also good propaganda. You are not reducing American freedom. You're just giving people more information to make better free choices. You can get some banks, credit card networks, wealthy people, and companies on your side to lobby for your bill.
At this point I wonder how you can fix the disconnect. It's hard to take away a benefit straight away knowing that the benefit in the long run would be better for everyone. It's crazy that Visa's net profit margin is in the 50% range. Sure I have to give them credit that it took a lot of work and effort to create the payment rails but how long have the credit card companies been milking in profits for now.
I agree that this is a problem (predating the internet). But if interchange fees between banks is largely a “solved problem,” why wouldn’t merchants create a middle man (like Visa or Mastercard or AMEX) of their own that keeps fees low? Ostensibly there’s no reasons for banks would refuse to work with them. Why are there not more payments processing companies?
It’s not quite a realistic explanation imo. When you have super high limits like 50k+ on a card. Money isn’t constant in a business but expenses are consistent so when business is good you charge and pay off. Then you hit a tough spot and it gives a reservoir to stay operational. Then you dig out when you recover but they make their cash back even from the promo deals. And when times are good only the subprime get screwed. Also you can refinance to a conventional loan if you have good credit and still good income.
Visa, Mastercard, Amex dominate world payments for a reason, they can make money in USA. Why would we make our payment system after the European model where nobody wins and every one loses. The credit card game reward good money management, credit building and give a lot of low income earner a reasonable 20% interest on credit debts vs 400% payday loans.
You ignore that the amount high income individuals subsidize other high income individuals can greatly outweigh the amount low income individuals subsidize high income individuals. A low income individal could complain that they have to subsidize public services, but the aggregate contribution of low income taxpayers can be minscule to net negative. There are some high income credit card users that maximize their value of every benefit they have. But there will always be much more with that kind of financial freedom that can't be bothered clipping coupons. Also value of credit cards may not equal the value of interchange, but cant pretend like consumers are indifferent toward paying by cash debit or credit even ina zero perks environment.
What would you pay for a service that doesn't require you to collect, store, or count, physical cash? Let alone deal with change? The amount of friction from handling cash starts to make the interchange fee (inevitably paid by the consumer) attractive. Avoiding the interchange and go cash at a cash only store, now you're spending time driving to an ATM, at an ATM, counting your cash, holding change, and finding that cash only store that waives CC fees, etc. yes, the interchange may be entirely avoided with cash, all whilst incurring other fees and inconveniences that could likely be higher.
Inconveniences to the customer to get cash in hand, maybe, but the pros far outweigh the cons to us business owners. I spent six figures two times over in merchant fees for both of my businesses last year. The last thing I want to do is raise prices ~3% across the board in order to wash out those costs, so instead we’re going to begin offering a “cash discount” to incentivize customers to pay with paper money. I don’t anticipate much to change in terms of how our customers pay, seeing as how about 85% of our sales are done with a card. But when it comes to running a small business, every little bit helps.
In Europe we do not entertain this bullshit interchange and network fees are capped Network fee 0.20% debit - 0.30% credit Interchange 0.20% i think Acquirer is not capped, but thanks to a lot of acquirers its around 0.10%-1% depending on the volume of transactions
I love my credit cards the company your buying from screws you? cancel the payment and let the credit card company fight the company for it's money! Just spend what you can afford and budget accordingly. Getting a $5k credit limit and spending it all in the first month when you make $2k a month is not the credit card companies fault take some damn responsibilty for your actions! As to debit cards never touch those any money that comes out is gone for good and between losing it, having it stolen or dublicated that's a massive risk and you have little to no recourse.
It’s not entirely true and really manipulative. According to research, when EU capped fees prices didn’t drop, merchants simply pocketed the money. Look at how EU economy is doing with all that excessive regulation.
There needs to be regulation that adds the credit card merchant fee back to the total and put it on the receipt. Otherwise cash-payers (who tend to be poorer) are subsidizing credit card rewards (for people who tend to be richer). Credit Card companies have raised the price of everything in America by about 1-3% which is ridiculous. No company should be allowed to skim that much money from every transaction.
I love advertising for Nebula, saying "no click bait" and immediately see click bait thumbnails. Seems like someone forgot to look in the mirror when they woke up.
What this video misses is that accepting cash as a business is not free either. Cash needs to be counted and processed, transported, it can be stolen, it can be lost, it can be fraudulent, etc. All of this translates into costs for the business. Is a 2.5% interchange fee worth it? Maybe.
@@sohopedeco We have sales taxes.The State, The County and The City all charge fees. In Los Angeles, I believe it's 9.75% total but that will go up to 10% in 2025 because of Homeless people. Thank the idiots who voted for that increase.
so given that a lot of europeans might beinterested but don't have credit cards, as seen in the video, can one purchase the lifetime option without a credit card?
European here, with a credit card, I don't even pay interest on any credit since it auto-pays off each month, but I still get purchase protection and an immediate credit line when necessary. You americans are just getting shafted by your corporate overlords.
Great video and very informative. Until regulations exist though, im going to continue to churn and enjoy my rewards. At the end of the day, its a game, if you're not playing it means youre being played.
And most companies online from Japan are refusing Visa and Mastercard, because of those two companies refusing to work with businesses there, citing "risk" as the motive. The tipping point that made every Japanese business refuse Mastercard and Visa was when payments to NicoNico were cut off.
Costco plays the companies against each other, whoever offers the best deal they have given them exclusivity in exchange for making Costco their loss leader.
Honestly, I was thinking the same thing, kinda bothered me. It's just so cumbersome, using "they" is just so much nicer and easier to say than the word salad of "he OR she" 🤦♀
This editorial is too slanted to enjoy. 😬 Every simplification is is targeted to a goal POV. 🙄 I don't want a journey that proffers a destination and then plans how to get there. I want a real adventure, where the destination is unknown, and the journey is earned.
I believe it is the banks, and not the credit card companies that hold the credit card debt. The credit card companies are not making money from interest rates. Please correct me if I’m wrong.
Historically loan sharks were arrested for charging similar rates to credit cards. Interestingly this law has not been applied to credit card companies in modern times.
Thanks for watching PolyMatter this year and see you in 2025! By the way, Nebula now offers the ability to gift memberships at gift.nebula.tv/polymatter
Take care and happy holidays!
You by far have the best channel and videos out of everybody on Nebula. The information you show in your videos is top-notch and very well researched and I honestly have no idea how you even figure all this stuff out.
I believe I found your channel through real life lore. He was always my favorite until I found your channel. I like the topics you cover a lot more. Thank you my friend
Ay-Mex?
In the UK at least, there is one important benefit of credit cards over debit cards: chargebacks. If a merchant screws you over you can initiate a chargeback and get your money refunded quickly. It is then up to the merchant to prove they provided the goods or services promised. Yes, this can be used maliciously, but it's a useful defence against dishonest companies, big and small. It can also protect you against companies that go bankrupt before delivering you the goods or services as the credit card issuer will refund you and become the creditor. Some debit cards do have similar protections, but generally they have a lower limit of £100, whereas credit cards have no lower limit, and they can be more restrictive in their terms.
I live in EU country, and you can request chargeback for both credit and debit cards here, there's no difference, and I think it's likely similar in the UK (banks might not want you to know about this to convince you to get a credit card).
@@mrmarecki1 Indeed, though there are some caveats I put in my updated comment.
@@Croz89 Even so, I've never heard of any card having a limit of chargeback requests, whether debit or credit. With some higher tier cards funds will be immediately returned to your account, as bank assumes claim will be decided in your favor instead of waiting for it to be processed in a few weeks/months, but that's a perk of specific bank/card, not related to whether it's debit or credit.
@@mrmarecki1 My debit card (which I only use for withdrawing cash) does have a £100 minimum for chargebacks, and I believe the terms are less favourable than my basic credit card. My credit card also allows for fee free overseas transactions at market exchange rates, which is useful for people who pay in foreign currency when on holiday (obviously not an issue for most people in the EU, and the US because they don't vacation outside their country nearly as much).
you can get those in the US obviously.
10:16 another part about this is that in doing so they convinced visa to introduce a higher tier card, making it so that all Visa interchange fees went up in the process (as you mentioned, you can't charge more for fancier visas). Chase almost single-handedly increased fees for everybody using a Visa just so they could get a slice of this top market pie.
You can charge more now. Recall the recent lawsuit
Child: I want the socialism.
Mom: We have socialism at home.
15:39 socialism at home.
It’s time for America’s most popular gameshow: I can’t believe it’s not illegal!
Don't credit card companies also make money by selling (anonymized) data of your purchases?
That is not legal in some places. However, I am pretty sure Google loves to participate in every card transaction via Google pay not only because of the related fees, but because of the additional information as well. Perfect marketing tracking tool.
Assuming you're financially responsible (which is a big assumption for some), the end consumer prices already have the fees baked in, so you'd be falling behind to not play the rewards game and get some of it back.
15:30 and here I am earning less than $20k a year and making 95% of yearly purchases with my credit card and paying it off every month.
Brazil has law that allows sellers offer cheaper prices if you pay with money. Not all of them offer it as cash at site increase the risk of being robbed and it's another cost to run the business (pay a security company to take the money to the bank).
I think the best regulation would be to just make it mandatory to pass interchange costs on to consumers.
The EUs approach of capping interchange is far from perfect and we also have issues.
Debit cards are far from ubiquitous in Europe. In Germany for example the main type of card used is the "girocard" which is cheaper than Debit. Nowadays many banks are pushing Debit cards because they offer benefits over giro and because of the higher interchange.
A ton of merchants don't accept Debit cards as a result and customers are often frustrated.
If costs were just passed on customers would automatically choose the cheapest transaction costs and if they really valued the benefits from more expensive cards they'd pay for them themselves instead of having this weird market where other people subsidise them.
How can you say '"girocard" which is cheaper than Debit', if girocards are literally debit cards? You whole comment makes a lot more sense if replacing every "Debit" with "credit". I've had my credit card denied at a hair salon, saying that they only accept debit cards. I didn't ask why, but the fees are probably the reason. Good thing I always have both cards with me.
@@TheOnlyGeggles Yes girocards are a type of debit cards but when I talk about giro cards in contrast to other debit cards you know what I'm talking about and that's just what they are called.
It does not make sense to replace "Debit card" with credit card in my comment because the types of cards gaining popularity in Germany are non-girocard debit cards and not credit cards.
This is one of the most informative ploymatwe videos I’ve ever seen, especially one that’s directly relevant to my life, wild stuff
You just listened to 20 minutes of biased video and thought it was informative. We're doomed.
Consider the additional cashier time saved and reduced theft risk from cards
The only reason I (a poor) can afford to have these nice cards is because i'm military. Otherwise i'd never consider affording a $700/year AMEX card
Yeah, you 'd better be paying for the benefits they offer out of pocket😅
Thank you for making this video! More people need to be aware of this business model!
Nothing new or surprising here to me, but a good reminder that you as an individual should be using reward cards and paying off in full every month to minimize your losses to the system discussed in the video. It also has beneficial knock on benefits like pumping up your credit score and the general consumer protections where the company is liable for addressing if your card is stolen or whatever.
Credit cards are bad for local businesses in the US sadly because of the price cashback % which takes away from the sales % of the store.
In europe this is more regulated for example and thats why there is no real benefit for credit cards there thats why they dont use credit Cards.
Idk how the credit score works compared to other countries because its mostly exclusively a north american model.
Bring back the good old days when local businesses handled customer credit on their own ledger books, gave stamps for cash payers, and managed layaway, which in no way increased their prices.
Amazing video! As a European I didn't understand how the American credit card system worked!
Instead of calling it "fees", since anyone hate that, they should call it "tarrifs". A lot of people seems to like the idea of being charged extra money when using that word.
Wow! What an eye opener. Thanks for the video.
This is why the whole of India only uses Google pay, every single roadside shop, every single auto rikshaw driver, everyone has Gpay (including me who's 12 so that I can pay when I go to school every day via auto rikshaw)
I'm from austria. I got a credit card because it is required for some online shopping / booking procedures. Costs me 20€ a year, I don't have any debt on it. I used to be angry at cash-only businesses because I handle most stuff with debit card, but I am starting to understand where they are coming from.
Wtf is with a ton of comments 1 minute ago that all say the same, your videos are a real source of inspiration thing, this feel like ai, also each of them have 2 absolutely random emojis after. Does anyone else think this is fishy
Those are bot comments commenting to build a profile that is supposed to make them look authentic so they aren't detected by any algorithm built to find them.
@@Kleberei the comment you are responding to is also a bot asking for engagement.
@@GM-xk1nw damn they have gotten good lmao
@GM-xk1nw Bro no I swear I’m not a not! Imp promise I was just genuinely weirded out by seeing the bit comments since I haven’t seen that before. Or who knows maybe every UA-cam comment is a bot who knows?
@@GM-xk1nwI don’t ping I dunno why
Credit card rewards are NOT tax free. You get a 1099 for most cash back rewards. Technically redeeming gift cards is still taxable. Basically only redeeming for travel is considered non-taxable
Merchant fees and people holding a balance on their card. There ya go
Interchange/merchant fees are between 1.5-3.5% (AMEX is typically the highest)
Hey, a topic I've understood for over a decade. Glad to see a big YT content creator elaborate & share the info.
Think about how long ago Fight Club came out, and they were that worried about it then. Look at the credit crisis situation now.
Isn't it a much easier for the store to offer discount when you pay by cash? Instead of charging a fee for the use of credit card and making the customer unhappy, like you said in the video? I live in South America and I get 1% cashback in every transaction. So of course I will use the credit card as much as possible. But some online stores offer 3% discount to pay by cash. Which is very little discount, but 3x more than I get using the credit card, so I simply choose to pay by cash. No need for fight.
How is it possible that despite all those intermediary fees most "global" goods like electronics or brand clothes are cheaper in the US than Europe, even after taking sales tax/VAT differences into account?
Likely the volume and scale of the US Market.
The US has lower import tax or as Trump calls it "tariffs"
taxes
Could also be the fact that the US dollar is the worlds reserved currency, but I don't know how much longer that will last.
@@missouri9949 it will last a long time if the new people don't do something very stupid in the next 4 years. China will not let the Yuan appreciate because they want to keep exporting. And BRICS currency wont be a thing since India will not let China to control its monetary policy.
Omg those poor corporations barely getting any profit from credit cards! The modem day serfdom they impose on us is totally understandable now.
Call companies are evil, but some are more evil than others!
Great video!
You need to spend many thousands dollar to get hundreds dollar profit. That's not good a money management
I started using a credit card and saw my consumption skyrocket, and realized I would stop using it unless a big purchase. Extremely difficult to track expenses. I started to switch to cashback gift cards and not only I get some money back but it is higher than my card and easier to track.
Ok but can I get the PolyBank PolyCard????
I live in Mexico an I am amazed about the credit card reward system that you guys have. I believe the best cash back in Mexico is at 3% and with certain conditions.
no way they got freehold mall in this 7:48
Isn't it a better solution to require that credit card companies disclose their "interchange" rates? That is not anti-corporation. The corporations that can profit off lower interchange rates will benefit from a law like that. It's also good propaganda. You are not reducing American freedom. You're just giving people more information to make better free choices. You can get some banks, credit card networks, wealthy people, and companies on your side to lobby for your bill.
17:22 Croatia mentioned!
No China? Surprising
At this point I wonder how you can fix the disconnect. It's hard to take away a benefit straight away knowing that the benefit in the long run would be better for everyone. It's crazy that Visa's net profit margin is in the 50% range. Sure I have to give them credit that it took a lot of work and effort to create the payment rails but how long have the credit card companies been milking in profits for now.
so many bot comments already my lord. dead internet fact
18:15 *shows canadian supermarket* lol
Our credit system is similarly fucked tho so its fair
Damn this is such good content.
I agree that this is a problem (predating the internet). But if interchange fees between banks is largely a “solved problem,” why wouldn’t merchants create a middle man (like Visa or Mastercard or AMEX) of their own that keeps fees low? Ostensibly there’s no reasons for banks would refuse to work with them. Why are there not more payments processing companies?
Please do a video on personal injury lawyers and how it all costs us in higher insurance premiums please
It’s not quite a realistic explanation imo. When you have super high limits like 50k+ on a card. Money isn’t constant in a business but expenses are consistent so when business is good you charge and pay off. Then you hit a tough spot and it gives a reservoir to stay operational. Then you dig out when you recover but they make their cash back even from the promo deals. And when times are good only the subprime get screwed. Also you can refinance to a conventional loan if you have good credit and still good income.
Visa, Mastercard, Amex dominate world payments for a reason, they can make money in USA. Why would we make our payment system after the European model where nobody wins and every one loses. The credit card game reward good money management, credit building and give a lot of low income earner a reasonable 20% interest on credit debts vs 400% payday loans.
You ignore that the amount high income individuals subsidize other high income individuals can greatly outweigh the amount low income individuals subsidize high income individuals. A low income individal could complain that they have to subsidize public services, but the aggregate contribution of low income taxpayers can be minscule to net negative. There are some high income credit card users that maximize their value of every benefit they have. But there will always be much more with that kind of financial freedom that can't be bothered clipping coupons.
Also value of credit cards may not equal the value of interchange, but cant pretend like consumers are indifferent toward paying by cash debit or credit even ina zero perks environment.
Credit card awards isn't "income". It's a discount. It's like a coupon.
Phenomenal vid
how do i apply for the PolyCard Platinum?
as an investor i love credit card people.
2:18 poor Shirley 😢
America never fails to make me laugh with how screwed up it is 16:38..
9:34 lol wasn't expecting my country to be suddenly mentioned like that.
As an Amex platinum holder I thank you all ❤
I have a Barclays credit card and if used smart I don't pay any interest on my purchases 😎
What would you pay for a service that doesn't require you to collect, store, or count, physical cash? Let alone deal with change? The amount of friction from handling cash starts to make the interchange fee (inevitably paid by the consumer) attractive. Avoiding the interchange and go cash at a cash only store, now you're spending time driving to an ATM, at an ATM, counting your cash, holding change, and finding that cash only store that waives CC fees, etc. yes, the interchange may be entirely avoided with cash, all whilst incurring other fees and inconveniences that could likely be higher.
Just get a debit card lol??? You avoid dealing with both cash and credit cards? It's really a no-brainer
- A European
Regulate interchange fees and you get all the benefits without the regressive wealth transfer, how magical.
Inconveniences to the customer to get cash in hand, maybe, but the pros far outweigh the cons to us business owners. I spent six figures two times over in merchant fees for both of my businesses last year. The last thing I want to do is raise prices ~3% across the board in order to wash out those costs, so instead we’re going to begin offering a “cash discount” to incentivize customers to pay with paper money.
I don’t anticipate much to change in terms of how our customers pay, seeing as how about 85% of our sales are done with a card. But when it comes to running a small business, every little bit helps.
So… get a debit card instead of dealing with cash. lol
Well, then raise prices, and give discounts for cash purchases.
In Europe we do not entertain this bullshit interchange and network fees are capped
Network fee 0.20% debit - 0.30% credit
Interchange 0.20% i think
Acquirer is not capped, but thanks to a lot of acquirers its around 0.10%-1% depending on the volume of transactions
Must Defeat the bot with my real comment
I love my credit cards the company your buying from screws you? cancel the payment and let the credit card company fight the company for it's money!
Just spend what you can afford and budget accordingly.
Getting a $5k credit limit and spending it all in the first month when you make $2k a month is not the credit card companies fault take some damn responsibilty for your actions!
As to debit cards never touch those any money that comes out is gone for good and between losing it, having it stolen or dublicated that's a massive risk and you have little to no recourse.
This American has been DEBT free since 2012.
13:15 that’s mt Ashland my home mountain
It’s not entirely true and really manipulative. According to research, when EU capped fees prices didn’t drop, merchants simply pocketed the money. Look at how EU economy is doing with all that excessive regulation.
Can we just make cash great again and make prices lower?
There needs to be regulation that adds the credit card merchant fee back to the total and put it on the receipt. Otherwise cash-payers (who tend to be poorer) are subsidizing credit card rewards (for people who tend to be richer). Credit Card companies have raised the price of everything in America by about 1-3% which is ridiculous. No company should be allowed to skim that much money from every transaction.
i want to resub to Nebula but most of the content i watch is on my TV (samsung w/o casting) any chance a tv app will come out?
I love advertising for Nebula, saying "no click bait" and immediately see click bait thumbnails. Seems like someone forgot to look in the mirror when they woke up.
Bruh that thumbnail is SEX ! amazing stuff.
I love amex
Great video, thank you!
I would already have gotten nebula if u could pay with Ideal as i am from Europe and don't own a credit card.....
Hundreds or hundreds of thousands? 😉
What this video misses is that accepting cash as a business is not free either. Cash needs to be counted and processed, transported, it can be stolen, it can be lost, it can be fraudulent, etc. All of this translates into costs for the business. Is a 2.5% interchange fee worth it? Maybe.
And I though that U.S does not have VAT.
They don't. They have a "sales tax", that is only charged in the last step of the production chain when the product is sold to the costumer.
@@sohopedeco We have sales taxes.The State, The County and The City all charge fees. In Los Angeles, I believe it's 9.75% total but that will go up to 10% in 2025 because of Homeless people. Thank the idiots who voted for that increase.
so given that a lot of europeans might beinterested but don't have credit cards, as seen in the video, can one purchase the lifetime option without a credit card?
European here, with a credit card, I don't even pay interest on any credit since it auto-pays off each month, but I still get purchase protection and an immediate credit line when necessary. You americans are just getting shafted by your corporate overlords.
Debt Plastic!
Whose taxes pay for the food stamps though?
Great video and very informative. Until regulations exist though, im going to continue to churn and enjoy my rewards.
At the end of the day, its a game, if you're not playing it means youre being played.
1:49 Didn't expect to see a card of my bank (more like employer's, they picked it for salary)
Costco doesnt take Amex, much less amex platinum card.
Costco use to take Amex.
They now only take Visa
And most companies online from Japan are refusing Visa and Mastercard, because of those two companies refusing to work with businesses there, citing "risk" as the motive.
The tipping point that made every Japanese business refuse Mastercard and Visa was when payments to NicoNico were cut off.
Costco plays the companies against each other, whoever offers the best deal they have given them exclusivity in exchange for making Costco their loss leader.
Is this going to be a 20 min explanation about how high interest rates and rolling credit debt fund the market cause that ain’t a secret bruv.
innit for the views... and he talks so freakishly slow... I had to put it at 1.75x.
F Disney
This is good insight given im an investment banker 😂
How to not get scammed by a corpo 101
1: Read what you sign
2: Understand what you sign
6% Cash back? Bull, unless it limited to something very small as a sign on bonus.
Show me the 6% cashbackl card and I'll get one.
Specifically groceries, and with a cap of 6k spend per year. Plus the card has a $95 annual fee. No such thing as a free lunch
6% back on groceries for the Amex Blue Preferred. Chase and Discover have rotating 5% categories like Walmart, Subscription services, etc...
I walked away from that paradise that for 80% Americans, became slave to debt.
Home Depot didn’t “spend” anything on interchange. It’s all passed on to the consumer.
They pass on to the consumer and end up losing some sales. That's where their expense is.
everyone knew that
I love my amex card
Why do you keep saying he or she instead of just they, it's easier to say and more inclusive
Honestly, I was thinking the same thing, kinda bothered me. It's just so cumbersome, using "they" is just so much nicer and easier to say than the word salad of "he OR she" 🤦♀
Kinda depressing…
Why are credit cards only in America? Answer: cuz they are stupid
This editorial is too slanted to enjoy. 😬 Every simplification is is targeted to a goal POV. 🙄
I don't want a journey that proffers a destination and then plans how to get there. I want a real adventure, where the destination is unknown, and the journey is earned.
ya know how the word "they" exists? you don't need to go out of your way to say "he or she" every time
cool
it's predatory interest rate. Not surprising.
I believe it is the banks, and not the credit card companies that hold the credit card debt. The credit card companies are not making money from interest rates.
Please correct me if I’m wrong.
Historically loan sharks were arrested for charging similar rates to credit cards. Interestingly this law has not been applied to credit card companies in modern times.
but things are more expensive in europe than in the us anyways.
because of taxes, you know the ones that pays for your surgery at the hospital
How did you make a 20 minute video from the most obvious thing ever