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Miles were never free. They just used to be paid for equally by everyone--including people not using credit cards! In effect, it was a sales tax imposed by Visa
by tikhonj 13y ago
Miles were never free. They just used to be paid for equally by everyone--including people not using credit cards! In effect, it was a sales tax imposed by Visa and Mastercard on everyone.
This change will make the price of using a credit card more transparent to the customers and will stop non-customers from subsidizing Visa et al. It's more fair and lets the market react much more efficiently to payment processors.
This change is a net positive for the market and therefore people in general.
- gorhill 13y ago> "Miles were never free. They just used to be paid for equally by everyone--including people not using credit cards! In effect, it was a sales tax imposed by Visa and Mastercard on everyone." You say that as if this new policy of charging extra for the airmilers will result in lower prices for everyone else, including people not using credit card. I don't think so.
- dwaltrip 13y agoCan you please elaborate on why you think this way?
- pravda 13y ago>Miles were never free. They just used to be paid for equally by everyone--including people not using credit cards! In effect, it was a sales tax imposed by Visa and Mastercard on everyone. Well, no. Interchange fees come out of retailer profits. That's why retailers care about them.
- graeme 13y agoRetailers on average increase prices to account for these fees.