🚀 go-pugleaf

>>>>> "Jeff" == SNOJXB  <SNOJXB@sdcmvs.mvs.sas.com> writes:

>> The "*MAIN*" benefit of credit cards is for the convenience of the
>> user.  If the user abuses that privilege, then he has only himself
>> to blame.  Further, if one pays off the outstanding balance every
>> month then what makes credit cards any different from using cash?
 
Jeff> The main difference is to the bank. If you pay cash for an item
Jeff> the store keeps all the profit. If you pay with a credit/debit
Jeff> card the bank gets a percentage of the sale. It's not a lot but
Jeff> it does add up. So the bank wins whether you pay off the card
Jeff> each month or not.

Actually, the *bank* might make more money off your credit card than
off your cash, but the merchant doesn't always.  Credit card slips are
far less likely to be stolen, and thus require less protection in the
store or on the way to the bank.  Besides, the banks charge merchants
to deposit money.  Credit cards, on the other hand, have all their
charges out in the open - a flat 1%-3% or more (depending on various
factors).  This is often cheaper than the cost to handle cash.

ethan
-- 
( Prof. Ethan L. Miller           voice: +1 410 455-3972 fax: 455-3969 )
( U of Maryland Baltimore County  email: elm@cs.umbc.edu               )
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( Baltimore, MD 21228-5398  USA   These opinions are mine, all mine!   )
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