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You get 95% of it back in the form of rewards, so it's not really a tax at all.
by xadhominemx 3y ago
You get 95% of it back in the form of rewards, so it's not really a tax at all.
- dr_dshiv 3y agoIt seems kind of like a scam, though, credit card rewards. I don’t know enough about it, I generally don’t like participating in those sorts of things. Do you have a ref on the 95%?
- xadhominemx 3y agoIf you don't know anything about it, why would you call it a tax?
- hackstack 3y agoLet’s just take 95% as a true figure … first of all the 5% you don’t get back is a straight up loss. The rewards you get at the end of the month are fine (eg cash back) but you’ve missed out on earning interest on the money you “get back”
- xadhominemx 3y agoCard network fees (the part credit card users don't get back) are about the same for the European payment systems. For card users on net there is essentially no difference. The interest argument of course is nonsense because the opportunity cost ia outweighed ~50x by the interest benefit you receive from the entire purchase going on credit vs just the 2% interchange.
- hackstack 3y ago“Of course”. Thanks for responding — can you clarify this interest benefit you are talking about?
- DANmode 3y agoIn exchange for signing away usage of your personal data/legally agreeing to participate in ad targeting.