Credit card with best rewards

[WTF?]

The downside is that the "free" stuff you get from CC companies end up increasing the costs of your goods and services. Lets pay 5% more for shit to get 2% back

maybe so, but unless companies start offering cash discounts, 2% back is better than 0% back

 

[ridenby]

You guys with the Amazon card find yourself stuck only using Amazon for purchases? I often shop around at different places like eBay and Sierra Trading Post. I'd feel like I'd be stuck with Amazon if I had the card though.

No, I have mine as preferred on ebay. And use it for a lot of other purchases.

 

[Will12785]

maybe so, but unless companies start offering cash discounts, 2% back is better than 0% back

Cash discounts are pretty common, what's even more common is credit card "processing" fees.

 

[Fullsize80cherokee]

My bank has a rewards credit card that I use for everything, not the best rewards I bet, but I can just log in to online banking and redeem the rewards and putting them in my checking account takes about 2 seconds.

 

[OHV Wildcat]

Cash discounts are pretty common, what's even more common is credit card "processing" fees.

I ask if there is a cash discount or a processing fee. It only seems to apply on big purchases for me. So, I write a check in those situations. Surely you don’t think the same group that’s talking about skimming credit card rewards is willing to pay a larger up charge than their reward, right?

 

[Will12785]

I ask if there is a cash discount or a processing fee. It only seems to apply on big purchases for me. So, I write a check in those situations. Surely you don’t think the same group that’s talking about skimming credit card rewards is willing to pay a larger up charge than their reward, right?

I'm not saying anything about the habits of people who use credit cards for rewards, I'm only pointing out the fact that credit cards create an expense for sellers, and all expenses are passed to consumers.

 

[DRTDEVL]

Lacking discipline and just totally going ape shit on purchases. I had an ex like that. Just swipe, swipe, swipe. Keep racking up charges like nothing. Tens of thousands in debt. This card didn't work? Ok here, try this one. Totally out of control. It was borderline mental illness.

Are you my ex-'s first ex?

 

[DRTDEVL]

We use 2 cards for most things around here... A USAA Cash Rewards Visa that is 2% on everything, and a USAA AMEX that pays 2% on fuel purchases (some other things, too) that I swipe at the gas pumps.

I've only had to fraud out my debit card once since starting this system. It used to be on the regular, fucking thieves.

 

[Wheelin66bronco]

Only card I have is Cabela's. We use it for large purchases only. I definitely don't use their points and cash back to my advantage but I do like the Cabela's points. As soon as a purchase posts to the account, she pays it off.

 

[grandeyota]

Also using Amazon card, but I’m sure there are better for what I’ll doing now vs when I got it.

I don’t use the points to shop, use them as statement credit or transfer to bank account. You don’t get the 5% back using points.

 

[realsquash]

Not that you care, but you should know that those dollhairs that you get on those cards comes directly from the merchant you're buying from. I don't know how it works through Amazon, but if you call me with your fancy points cards my processing fee is a lot higher. The credit card company isn't giving you that money.

 

[junkytj]

I’m still on the Citi DoubleCash. 2% on everything, no special categories per quarter or whatever. I just took other people’s word for it, though. Always meant to actually evaluate my spend and make sure I’m getting 2% and that it’s not screwing me somehow. Never have done that.

That's what I have also and I've checked it. They do what they say. Works out great for me. I don't want to have to evaluate if the extra 5% off from amazon makes it worthwhile or go to ebay without it or any other fuckin store. 2% whether I'm buying blocks at the local yard or a pocket pussy off the internet.

 

[OHV Wildcat]

Not that you care, but you should know that those dollhairs that you get on those cards comes directly from the merchant you're buying from. I don't know how it works through Amazon, but if you call me with your fancy points cards my processing fee is a lot higher. The credit card company isn't giving you that money.

Can you elaborate on this? As in, does my Mastercard with 2% rewards charge you more processing fees than any other Mastercard? I know Amex and Discover are typically higher processing fees, just didn't know if those fees are charged according to the card sub-type. As in, not the brand on card, but the actual reward type.

 

[OHV Wildcat]

I'm not saying anything about the habits of people who use credit cards for rewards, I'm only pointing out the fact that credit cards create an expense for sellers, and all expenses are passed to consumers.

Point taken, and of course you're right. My point is that that cost is permanently built in on most purchases. If there's a cash discount, you can bet I'm taking it. If they're unwilling to do a cash discount, then I'm paying that fee whether I get a benefit or not.

 

[realsquash]

Can you elaborate on this? As in, does my Mastercard with 2% rewards charge you more processing fees than any other Mastercard? I know Amex and Discover are typically higher processing fees, just didn't know if those fees are charged according to the card sub-type. As in, not the brand on card, but the actual reward type.

Sure - the vast majority of credit card processors that a business can sign up for and use so they can take credit cards charge variable fees. Amex and Disco are higher than Visa/MC normally, but when you use a 2% rewards card most (or all) of that 2% comes straight out of the business' pocket when the card is processed. Of course they only see the bill at the end of the month, not when running the card. There are services that a business can sign up for that doesn't get the hit from variable fees, or the rewards cards at all, but they also cost more. It got bad enough for me that I was taking a 5% whack off of almost every purchase because nobody would buy something over $1k unless they put it on their rewards card.

 

[ROCKTACO]

USAA is 2% back on everything. Wife and I use the card for all purchases and we average about 100K yr for 3 years so far. So 3K back in 3 years.

 

[Clemson13]

Sure - the vast majority of credit card processors that a business can sign up for and use so they can take credit cards charge variable fees. Amex and Disco are higher than Visa/MC normally, but when you use a 2% rewards card most (or all) of that 2% comes straight out of the business' pocket when the card is processed. Of course they only see the bill at the end of the month, not when running the card. There are services that a business can sign up for that doesn't get the hit from variable fees, or the rewards cards at all, but they also cost more. It got bad enough for me that I was taking a 5% whack off of almost every purchase because nobody would buy something over $1k unless they put it on their rewards card.

I assume that you raised your prices to make up for that? As a result that screwed the person not using a fancy rewards card? That is how I always figured it worked.

 

[woods]

Sure - the vast majority of credit card processors that a business can sign up for and use so they can take credit cards charge variable fees. Amex and Disco are higher than Visa/MC normally, but when you use a 2% rewards card most (or all) of that 2% comes straight out of the business' pocket when the card is processed. Of course they only see the bill at the end of the month, not when running the card. There are services that a business can sign up for that doesn't get the hit from variable fees, or the rewards cards at all, but they also cost more. It got bad enough for me that I was taking a 5% whack off of almost every purchase because nobody would buy something over $1k unless they put it on their rewards card.

Wow, never even considered that. Our fees are 2.95% for using any credit card. They charge us, so we have to charge the customer. I'm going to use this info too. Customers get upset over it, and I can now explain to them why such fees exist.

 

[Poriggity]

Amazon Prime VISA from Chase, if you buy a lot of shit on Amazon like me. 5% earnings on Amazon.

This. We buy tons of Amazon stuff.

Also costco visa. We are executive members, and it costs $120/year for an executive membership . We got our executive member reward check recently and it was $156 , so the membership payed for itself and then some. Qe also get our regular credit card rewards on that card, to the tune of an additional $6-700/year. We also have a chase freedom card,that we use significantly less that offers decent rewards.

I use the Costco visa for most of my purchases. My wife usually uses the Amazon card,, and they all gwt paid off monthly as to not pay interest.

 

[realsquash]

I assume that you raised your prices to make up for that? As a result that screwed the person not using a fancy rewards card? That is how I always figured it worked.

At first I was going to do that, but I discovered that Paypal, of all places, would save me a bunch of money if I used their credit card processing. It's a fixed rate for everything and they tell you right up front. It was like $0.35 + 2.3% or something along those lines. I think it got down to 2.1% over a certain monthly $ threshold, which I usually would meet. Almost all of my transactions were $1-2k and almost every single one was 5-6% fees because of the points cards so this saved me quite a bit. I should revisit this because I made that change a long time ago.

 

[junkytj]

So the what card is best for me turned into you are killing the businesses thread.

Quick question since I don't run a business. I grew up with my dad and helped him until I left town and he retired from it before the concept of rewards cards. His constant bitch was the cost of bad checks. He would have around 50 checks a month in varying amounts that he took a hit from the bank on and about 2 or 3 he had to take to the sheriff for prosecution and attempt to recover merchandise. He had a wall of shame I had to memorize and those people could no longer write checks and often I had to collect cash from them before they could buy anything. Probably 3 or 4K transactions/month were as common as CCs. Even the good checks, you to spend time totaling, and signing/stamping and taking to the bank and time to clear and then finally returning to the acct. There was clearly a cost associated with getting your money is my point.

At some point, I would think 2-5% processing fee costs less than all that madness to your overall business. Can someone who has been in business through this transition explain how CCs are more expensive?