Credit Card Benefits

[ua_guy]

I'm pretty sure merchants who take credit/debit cards have always been baking the interchange and processing fees into the cost of what they sell - just without letting consumers know it.

Definitely. I guess what I meant to say is just raise the cost of goods to cover the increase in processing fees, like it's always been. Or maybe they're trying to incentivize the few people who pay cash, effectively giving them a 3.5% discount instead of paying the higher cost of goods with the processing fee included.

[disneysteve]

I imagine part of the issue could be that years ago there were plenty of cash customers to offset the card customers. Now nearly everyone uses a card so they don’t have that offset anymore.

[Jluke]

Or they are double dipping by charging more for services and for using a credit card.

I know the one pizza place stated cash is king, etc. so they were more about trying to avoid a cashless society. In their own little way.

that wasn’t the first time I had seen/heard that perspective but definitely the first local example.

as for the car service, had they come back with something I felt wasn’t necessary I would have just told them I didn’t have enough in my checking account but if I could have used a credit card without a fee I would have done the suggested service.

I’m back there in two weeks with my other vehicle.

[LivingAlmostLarge]

I'm really annoyed by the fees on all restaurant bills and they wonder why people aren't eating out?

[bjl584]

Reviving this one.

Sitting at my Honda dealer for service and as soon as I walked through the door there were signs everywhere how they are now charging 3.5% fee if you use a credit card.

cash, check or debit is preferred.

I can’t say I’m surprised as just this morning I was thinking I need to carry more cash because our pizza places charge that fee too for credit cards.

feels like I need to budget differently now or pay 3.5% fee (cc reward is only 1% cash back)

I was looking at $9 - it’s going to start adding up soon

so I used my debit card

This is fairly common with businesses where my cabin is. A lot of businesses there don't accept credit cards, they are cash only. The few that do charge a service fee.

[myrdale]

Sitting at my Honda dealer for service and as soon as I walked through the door there were signs everywhere how they are now charging 3.5% fee if you use a credit card.

This one bit me a while back.

I had a leak patched on a tire, $25. Great service.

A couple months later I went in to buy a new set of tires, $750. While the tires were being installed I noticed the sign. When I went to pay with my debit card, I told them they'd have to wait, that I'd have to go home for my check book. 30 minute round trip later I paid with a check and saved $25 for this fee.

I didn't argue with them because I like them and I've had good service in the past, but what they are doing is a breach of contract law. For a customer paying with a debt card they ARE NOT allowed to charge a fee or minimum. Visa guarantees a hassle free experience for anyone using their debt card. The reason is that if a customer is hassled using a debt card, they just might pay in cash instead. You can report them. It probably makes no difference. I don't shop at gas stations that require minimums, though at this point it's hard to be less than $5 with a coke and candy bar.

[QuarterMillionMan]

Question for the boards. Will I have to file this $444 on my 2024 tax returns should I cash this amount today? BTW, this is a BofA credit card, no annual fee.

[QuarterMillionMan]

To maximize the rewards I only use this credit card for online purchases.

[Jluke]

I have never.

Quick search says that the IRS considers those rewards on your spending and it is not taxable.

sign up bonuses where you do absolutely nothing are taxable.

but I think credit card companies do the sign up and spend x amount in 3 months so it would be considered a reward for spending.

[QuarterMillionMan]

Thanks Jluke, I'll cash it tonight then.

[QuarterMillionMan]

Capital One will be paying out to me a $1500 bonus for depositing $100,000 into their online savings account around May 2024. I'll make sure to save 1/4 of that $1500 to pay the taxes at year's end.

[QuarterMillionMan]

BofA gave 2 options for redemption, apply towards credit balance or a paper check mailed within 14 days. I opted to apply towards balance.


For my Citi Rewards credit card the redemption was kind of gimicky with 2 options as well. Apply towards credit balance but here's the catch, let's say the same $444 in rewards if I chose to apply towards the credit balance Citi Rewards would cut in half the amount to $222, which is a rip off only getting 50%. The other option is to purchase gift cards at 100% but they only have select varieties or limited gift cards to choose from. I chose the gift card option also because there was a promotion where each $100 gift card was discounted to $90. So I got $100 for Panda Express, $100 for Walmart, $100 for Target, and $100 for Home Depot (all w/a 10% discount).

[QuarterMillionMan]

Just redeemed Citibank credit card points for a $100 Dominos gift card.