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But the card issuer is issuing debt for 0% to these users. Upwards of 60 days. That cost money to the card issuer.
by adrr 5y ago
But the card issuer is issuing debt for 0% to these users. Upwards of 60 days. That cost money to the card issuer.
- WalterBright 5y agoI take advantage of that by using the card to pay bills (that don't charge a "convenience fee" to use a CC) and try to time things to get as close to the 60 days as I can. It's just a long standing habit of mine.
- lotsofpulp 5y agoThat seems like a lot of trouble compared to setting up auto pay for everything to save a few bucks.
- WalterBright 5y agoWell, I did try to get my credit limit raised temporarily once so I could buy a car with the card, and get the cash back. The CC company refused. I pointed out how they'd still be making 2% net on the transaction, which would be well worth their while. This kind of pitch was above the pay grade of the phone people, and I got the "there's nothing I can do" garbage.
- drfuchs 5y agoThe card issuer doesn’t pay the merchant for a while, so it’s the merchant who is essentially paying the actual debt interest for a few months. Ask the owner of any small business where you use your card how long it takes for them to actually see the money.
- adrr 5y agoSettlement is a couple of days. If merchant is getting their money later, the processor is holding the cash. I’d guess to manage risk from chargebacks. Merchants pay interest with the increased interchange. This is why debit cards have reduced interchange. ~2% vs 0.05%
- dangrossman 5y ago2-3 business days between charging someone's card, and the settlement including that charge hitting my business checking account. Not months.
- drfuchs 5y agoEvidently, my dry-cleaner lied to me.
- mjh2539 5y agoThey were probably just trying to get you to pay with cash/debit card.