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Target also gives you a 5% discount for using their RedCard. It's your typical store-branded loyalty card. Except, instead of giving you "points" on your purcha

Target also gives you a 5% discount for using their RedCard. It's your typical store-branded loyalty card. Except, instead of giving you "points" on your purchase you get an upfront discount. Target is unique in that they make this option available through a branded debit card for those that don't want or don't qualify for a credit card. But, it's not a discount specifically for paying with cash. > If a merchant wanted to, it would be trivial for them to give you a 3% discount for paying with debit. It makes more sense to me for it to be a surcharge for using a credit card, but the last I knew the credit card companies disallow that in their agreements. Discounts get confusing and bump up against weird cases like minimum advertised pricing and potential taxation on the discount. Debit cards can get a bit weird when they function as credit cards. A customer may use a debit card but swipe it as Visa or Mastercard and the fees the merchant pay will be different, setting up a constant source of frustration at the register.

lotsofpulp 3y ago
> Discounts get confusing and bump up against weird cases like minimum advertised pricing and potential taxation on the discount. I have never heard of this. Merchant gets the revenue, merchant pays the tax. If the debit price is $10, then the sales tax is on $10, and if the credit price is $13, then the sales tax is on $13. > Debit cards can get a bit weird when they function as credit cards. A customer may use a debit card but swipe it as Visa or Mastercard and the fees the merchant pay will be different, setting up a constant source of frustration at the register. Visa and Mastercard are payment card networks (PCN), they can perform both debit card and credit card transactions. If the card says debit on it, then it will be a debit card transaction with debit card fees. And no one should be swiping anymore, so I do not know what “swiping it as visa or Mastercard” means. It either says Visa or MC on the card, and that’s the PCN it’s going to use.
- nulbyte 3y ago
  > And no one should be swiping anymore, so I do not know what “swiping it as visa or Mastercard” means. It either says Visa or MC on the card, and that’s the PCN it’s going to use. Debit cards are multi-branded. STAR is a popular debit network. Running a transaction over a debit network is far cheaper; often the merchant only incurs a flat fee for the transaction, and most card terminals give the customer a choice.
- deleted 3y ago
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lotsofpulp 3y ago

> Discounts get confusing and bump up against weird cases like minimum advertised pricing and potential taxation on the discount. I have never heard of this. Merchant gets the revenue, merchant pays the tax. If the debit price is $10, then the sales tax is on $10, and if the credit price is $13, then the sales tax is on $13. > Debit cards can get a bit weird when they function as credit cards. A customer may use a debit card but swipe it as Visa or Mastercard and the fees the merchant pay will be different, setting up a constant source of frustration at the register. Visa and Mastercard are payment card networks (PCN), they can perform both debit card and credit card transactions. If the card says debit on it, then it will be a debit card transaction with debit card fees. And no one should be swiping anymore, so I do not know what “swiping it as visa or Mastercard” means. It either says Visa or MC on the card, and that’s the PCN it’s going to use.

nulbyte 3y ago
> And no one should be swiping anymore, so I do not know what “swiping it as visa or Mastercard” means. It either says Visa or MC on the card, and that’s the PCN it’s going to use. Debit cards are multi-branded. STAR is a popular debit network. Running a transaction over a debit network is far cheaper; often the merchant only incurs a flat fee for the transaction, and most card terminals give the customer a choice.
deleted 3y ago
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