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View Diary: Obama vs. Usury?  Why Not? (Updated) (251 comments)

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  •  Cash cow (3+ / 0-)

    in two ways. They get the interest but more importantly, they don't have to pay the interchange that would be going to the card issuer.

    Visa, MC, Amex, Discover all charge a percentage of every purchase (called interchange) plus a set transaction fee and split it with the issuer (bank, credit union). It is deducted from the purchase amount. So when you charge $100, you pay $100, but the store gets $95. If you use a department store card, the store gets to keep that $5 that would go to the card issuer and the card company, though the store will still pay a merchant processing fee to handle the transaction, so they maybe get a total of $99. Multiply that $4 for every $100 sold and it adds up.

    And the clerk's job probably depends on selling a certain number of cards each month.

    They always say time changes things, but you actually have to change them yourself. - Andy Warhol

    by 1864 House on Sun Mar 29, 2009 at 02:43:23 PM PDT

    [ Parent ]

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