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Well if you keep doing this and your credit card gives like a 5% cash back on restaurant purchases...this is virtually free money?

by fma 6y ago

ipsum2 6y ago
Until the one time it does work, and you end up with 500 ice cream cones.
- yjftsjthsd-h 6y ago
  Yeah, now you have 500 ice cream cones so it's still a win:)
jdmichal 6y ago
It's not free. That cash refund isn't refunding the merchant their processing costs for the credit card. And that's what's paying your 5% cash back. The store is losing a pennies each time that happens and some of them are flowing to you.
- Sebb767 6y ago
  Well, yes, but it's also them not refunding via the original payment processor and them letting the order go through despite being unable to fulfil it. I don't want to make a point that this is the moral thing to do, but the error is with McD here.
  - jdmichal 6y ago
    I'm not making any moral judgement. I'm just explaining where that money is coming from, and that it's not "free". Also, issuing a refund would still likely incur fees with the processor. They may dodge fees if they are within the window to void the transaction instead. Depends on their processor and contract.
    - somehnguy 6y ago
      I don't think anyone was under the impression that it's 'free money' to everyone involved. It's 'free money' to the person it happens to (original poster).
      - jdmichal 6y ago
        Sure. But there is no actual thing as "free" money, in the sense that it all comes from somewhere. And honestly, probably nothing is truly free. Even sunlight is the result of spent nuclear potential of the Sun. Unearned is maybe a more precise adjective to use in these scenarios. But again, the point behind my comment was to explain where the money was actually coming from. I feel like these responses keep trying to apply a moral-judgement reading to my comment where none was intended. If one didn't know the details behind merchant credit processing, they didn't know where that cash back was coming from. And the answer is that the merchant still lost money in that transaction.
        somehnguy 6y ago
        >But there is no actual thing as "free" money Yeah I get that. I feel like my reply might not have properly explained itself. Nobody is applying a moral judgement to your comment (that I've seen at least), we're pointing out that yes, we know there is no such thing as free money in a grand sense. For most people on this board merchant fees aren't some unknown thing. We know this, and obviously McDonalds takes a tiny hit for the fees every time they refund a card transaction with cash. It's free money to the person it happens to is what the commenters were saying. McDonalds refunds my card payment with cash, I get the credit card points and my money back. It's free money. To me. McDonalds taking a hit is irrelevant to me as I did not lose anything, I only gained. Hence free money. The context is important.

Well if you keep doing this and your credit card gives like a 5% cash back on restaurant purchases...this is virtually free money?

by fma 6y ago

Well if you keep doing this and your credit card gives like a 5% cash back on restaurant purchases...this is virtually free money?

ipsum2 6y ago

Until the one time it does work, and you end up with 500 ice cream cones.

yjftsjthsd-h 6y ago
Yeah, now you have 500 ice cream cones so it's still a win:)

jdmichal 6y ago

It's not free. That cash refund isn't refunding the merchant their processing costs for the credit card. And that's what's paying your 5% cash back. The store is losing a pennies each time that happens and some of them are flowing to you.

Sebb767 6y ago
Well, yes, but it's also them not refunding via the original payment processor and them letting the order go through despite being unable to fulfil it. I don't want to make a point that this is the moral thing to do, but the error is with McD here.
- jdmichal 6y ago
  I'm not making any moral judgement. I'm just explaining where that money is coming from, and that it's not "free". Also, issuing a refund would still likely incur fees with the processor. They may dodge fees if they are within the window to void the transaction instead. Depends on their processor and contract.
  - somehnguy 6y ago
    I don't think anyone was under the impression that it's 'free money' to everyone involved. It's 'free money' to the person it happens to (original poster).
    - jdmichal 6y ago
      Sure. But there is no actual thing as "free" money, in the sense that it all comes from somewhere. And honestly, probably nothing is truly free. Even sunlight is the result of spent nuclear potential of the Sun. Unearned is maybe a more precise adjective to use in these scenarios. But again, the point behind my comment was to explain where the money was actually coming from. I feel like these responses keep trying to apply a moral-judgement reading to my comment where none was intended. If one didn't know the details behind merchant credit processing, they didn't know where that cash back was coming from. And the answer is that the merchant still lost money in that transaction.
      - somehnguy 6y ago
        >But there is no actual thing as "free" money Yeah I get that. I feel like my reply might not have properly explained itself. Nobody is applying a moral judgement to your comment (that I've seen at least), we're pointing out that yes, we know there is no such thing as free money in a grand sense. For most people on this board merchant fees aren't some unknown thing. We know this, and obviously McDonalds takes a tiny hit for the fees every time they refund a card transaction with cash. It's free money to the person it happens to is what the commenters were saying. McDonalds refunds my card payment with cash, I get the credit card points and my money back. It's free money. To me. McDonalds taking a hit is irrelevant to me as I did not lose anything, I only gained. Hence free money. The context is important.