What is the Check Cashing Card costing all of us????

[defendandprotect]

My local vegetable store -- family run -- has fresh produce, fruits and

they make cakes, pies, and pastas -- lots of nice prepared foods.

A deli and they make sandwiches.

Very popular store --

I've been trying to use mainly cash when I shop there because I had begun

thinking about how much the cash card is costing us all. The owner had

told me once that for the cost of the card that he could add another employee.

They have four family members there and about four or five other employees.

Anyway, yesterday, the owner told me that it costs them .50 cents merely to

swipe the card. And, additionally about $2500 to $3000 per month for charges

made by customers on the cards!!

Add all of that back into our economy and the prices we pay and I think we

should all be giving this a lot of thought!

I'm going back to checks and cash ---

[azmouse]

1. What is a check cashing card?

Is that the same as a debit card?

[defendandprotect]

5. It's a card which draws on your checking account . . .

I guess it's also a "debit" card --- if you use a pin # . . .

which I try not to do.

I use it as "credit" and add my signature . . .

[HarukaTheTrophyWife]

33. Using it as "credit" costs the merchant more than using it as debit

Just an FYI.

[Wildewolfe]

A check cashing card

.. is also known as signature debit...

It's a card tied to your checking account that can be run as either a credit card or a debit card.

If you run it as a debit card you will pay a small fee for transaction and likely the store will pay a small percentage of the transaction as well.

If you run it as a credit card the store pays a fee for the transaction and a percentage as well. The flip side is frequently these cards run in this mode will have a rewards program for you.

The big downside is for small retailer. Those fees really add up and offset already small profit margins.

So use cash when you can to support your local businesses and swipe swipe swipe at your local wallyworld.

[WillowTree]

46. Nonsense.

I've had debit cards from four different banks over the years and I've never been charged a fee by any of these banks to use it as a debit card. The deal is that the issuing bank charges the merchant a small fee if you use it as a credit transaction (aka a "non-pin" transaction), but it costs the bank in terms of processing expenses if you use it as a debit. In fact, my current bank actually awards points for any "non-pin transaction"

I did see a sign up in one service station in the area that says that they charge a $2 fee to purchase cigarettes with a debit card, which is a total rip-off since it costs them nothing to accept it as a debit, and that explains why I buy nothing there ever. But I've never heard of anyone being charged a fee by the bank for using a debit card. If your bank does, I'd consider shopping for a new bank. Really.

[SoCalDem]

49. Yep.. I have NEVER been charged a "fee" to use my debit card for a purchase

Now if I used my Provident bank debit card to get cash at Bank of America, they might BOTH charge me, but I only use it for PURCHASES..instead of writing a check or usiing cash..

Even when I use it at a restaurant that does not have a "put your pin number in" machine, I am never charged "extra" by the restaurant or the bank..

I bank online to pay bills, and am not charged for that either..

I love the "checkless" economy:)

These cards are a blessing for most merchants..if you don;t have the money, the transaction cannot proceed, so it saves them the hassle of trying to collect for bad checks, and by having the ability to use the debit cards, they can easily post signs that say NO CHECKS..

Even if it costs the merchants a little per transaction, I'm sure most merchats are savvy enough to build in a price increase to cover it...and then they make even more when people pay cash..

[Wildewolfe]

50. The fee is generally not charged by the bank for using a debit card

It's charged by the processor or the merchant.

I write credit/debit merchant apps for a living so support for debit fees is something I've dealt with for years. Non pin transactions don't have fees as you said. PIN transactions, at least for the merchants I've done code for generally do, though there is starting to be a trend for reduced fee type cards, though those are just entering some markets.

I guess it's quite possible that some merchants waive the fee.

In either case, buy a snickers at wally world with your non pin card and they eat a net loss on the transaction... even with the discounts they negotiate with the card hosts....;p

[Triana]

2. I still write checks and I REFUSE to have a check-card...

...I have a plain old ATM card - it's not a "debit" card. I HATE debit-cards - the bank keeps trying to foist one on me and I REFUSE.

I have ONE credit-card that I pay off each month most of the time - I hate those too but can't do without one.

[Blue_In_AK]

13. I'm with you, Triana.

I have a debit card, but I never, ever use it except for online purchases when I don't want to use my credit card.

[dansolo]

29. I would never use a debit card for an online purchase

If your number gets stolen, you have much more protection using a credit card.

[AndyA]

3. I always try to pay with cash whenever possible.

It does lower the cost of doing business for those who have to pay processing fees.

Unless it's a large amount, I almost always pay with cash. I can go to the ATM and get more cash if I need to, and it doesn't cost anything.

[dysfunctional press]

4. a "check-cashing card"??? do you mean a debit-card?

a "check-cashing card" is what the grocery store issues you so that you can write a check to pay.

[GOTV]

6. He would hire an employee except for the cost of something not related to the employee?

These things never make sense when I hear them. Same as when conservatives say that a cut in taxes to businesses will cause businesses to hire.

Simply put, each employee represents income to the business. An employee costs money but generates more than their cost or else the job is eliminated. If another employee would cost X but would generate Y in income and Y > X that employee should be hired for the benefit of the owner. How does the cost of the check card figure into that?

It's not like businesses only hire when they realize a profit. It fact profit or loss is a silly reason to hire or fire. It's simply a question of, "If I don't hire a new employee for X am I losing Y (where Y>X) in income?"

[Kittycat]

9. Furthermore - it's the cost of doing business.

The fees aren't taxes. The business owner is paying for a service provided by another company. If he doesn't like the fees associated, no one is forcing him to use the service. He can just be an all cash operation, like most of our Farmer's Market vendors are.

[defendandprotect]

16. Re-read what I said ...

The owner had told me once that for the cost of the card that he could add another employee.

Presume if he wants another employee or needed one, he'd hire one.

He was making clear the extravagant COST of the card for business owners.

It's the credit cards which don't make sense ... profits for non-productive middle-men.

Credit card industry needs to be reigned in and aware citizens shoukd be helping to do that-!!!

[Atman]

28. I read the thread and this sub-thread...I'm afraid it is you who is missing the point

There would be no need to hire another employee if the store owner didn't have the workload to support it. Period. He's not running a store just to pay people to hang around wearing aprons with his logo on them. The money he is paying to the card processing companies is just another business expense, like electricity and brown paper bags. He either has the business to support these expenses or he doesn't, or he has to find a different way of doing business (all cash?). Hiring another employee won't bring in more business, but more business could certainly necessitate the hiring of a new employee.

These "non-productive middle men" provide a service to people who choose to use that service. So many people find the service convenient that most store owners seem to be able to work the service fees into their profit margins, and realize that the inconvenience of not offering the service actually costs them business.

All that notwithstanding, yes, the credit card industry sucks and should be reigned in. But the argument one way or another should remain focused.

:hi:

.

[defendandprotect]

45. Try this . . . he's not looking to hire another employee . . .

he was giving me a gauge of the expenses involved in using cash cards.

All business expenses are passed on to the customers --

and so are credit card charges.

You may see cedit card fees as "productive" -- I don't. They're a futher drain on

the cost of doing business.

And, I'm saying we should give some thought to using these cards, particularly

in this economy -- and with the record of the credit card industry.

There is also a huge hidden theft problem with these cards and charges.

Which, again, we all absorb.

[HarukaTheTrophyWife]

34. Bouncies never make sense

[AyanEva]

7. I always use my check card

Although I do see your point.

I try not to carry any large amount of cash because I live in a big city. I'm a very small female and I just feel it's safer to have as little cash on me as possible. I can cancel a card if it's stolen and recoup the money. I can't get back, say, $50 in stolen cash once it's gone. And I need that $50. Also, I despise writing checks.

[defendandprotect]

18. Yes...I see your point ---

However, there's also lots of theft on these cards which industry has to absorb.

And, considering the costs for businesses the cards add up to greatly increased prices

for ALL of us on everything we buy.

If someone is going o mug you for CASH, couldn't they as easily force you to extract

cash from your ATM for them???

What about checks--??

[Kittycat]

8. I use cash at the farmer's market.

I don't even carry a check book or debit card. I go to the bank, pull out the cash - and head to the market. That's it.
All of my other purchases are made with a credit card that earns us points for everything from clothing to eating out. We cashed in a bunch of points late fall, and ended up a few gift cards that we're still using.

[defendandprotect]

19. Good idea ... I have a card that does "points" ...

[Bill McBlueState]

10. this will be almost as much fun

as your thread about the horrors of the DTV switch.

[ieoeja]

11. Debit or credit?

I know they are charged a fee for credit. I thought they were not for debit. But it may be they are just charged less for debit (which is why the best designed machines force debit cards through the debit path instead of allowing the buyer to pick debit or credit).

A lot of places are setup for credit at the cash register, but not debit/ATM. They either haven't made the investment, or aren't aware of the savings potential.

[Mosby]

12. mom and pop retailers have to use 3rd party vendors

for debit transactions. They pay as much as .75 cents for just one transaction. I work for a large retailer and pay .03 cents for a debit sale. Credit sale commissions run from 3.5% for VISA/MC to 7% for AMEX.

edit - clarity

[ferrous wheel]

21. .03 cents? Do you mean .03 dollars?

:eyes:

[defendandprotect]

22. So .. $30 of groceries

would be .92 cents....

Meanwhile, when gas prices were zooming upward, gas station owners were furious

that they had to pay more to credit card companies --

Usual $15-$20 sale went to $20-$40 and beyond ... doubling what they had to

pay to credit card companies.



PS: The owner said he won't take AMEX ... evidently too high!

[Midlodemocrat]

14. It's the cost of doing business. I always use my debit card.

[defendandprotect]

23. ...it ends up being the increased cost to you ...!!!

[HarukaTheTrophyWife]

27. I'd rather pay an extra 3% than stand behind some asshat trying to figure out how to write a check

[ferrous wheel]

38. When I find myself behind someone who needs to write a check and doesn't even fucking START

to write it out until every last twinkie is scanned, I come awfully close to saying "What is your Fucking problem you goddamn idiot"...

:grr:

[HarukaTheTrophyWife]

40. It's really rude

And, then followed by thumbing slowly through the whole book, and slowly entering the transaction in the ledger.

[ferrous wheel]

47. Until homicide justifiable by stupidity is legal, I guess we'll just have to let them

exist.

:grr:

[defendandprotect]

42. Agree . . .

some seem to think they're writing their last will and testament --!!

[Chan790]

35. Not really...

prices are driven much-more by what consumers will pay, not the cost of the retailer of doing business. If you pay in cash, that doesn't lower the cost of the product as the price is driven by demand...it reduces the profits of the retailer...that's it. Since the retailer has chosen to accept credit cards, that is a retailer-side expense they have chosen to pay.

There is no correlation between debit/credit usage and prices. In fact, accepting debit cards typically lowers prices despite the higher administrative costs because many, even most, consumers will not frequent a retailer that does not accept credit cards, especially here in the inner-city...meaning a retailer must charge more per item to account for less sales.

[Raskolnik]

15. If they cost the business more than they generate in profit, why does the business accept them?

This doesn't make sense.

[defendandprotect]

24. Why does a gas station take them...?

If they don't, customers may go elsewhere ...

The cost stands alone -- probably ALL passed on to consumers in price of products ..

The economy has to absorb this -- and consumers are undoutedly paying more for

everything.

[Chan790]

37. You can continue to assert this...

but it's still not true.

[defendandprotect]

41. What's not true . . . ???

This isn't about YOU . . . it's about all of us.

[Raskolnik]

48. Exactly. "If they don't, customers may go elsewhere"

Which is why they are not actually "costing" the business money, but making money.

[Retrograde]

31. a few don't

I've recently been to a few places that only accept cash and maybe 1 card. I've also seen a few - very few - that offer a small discount for cash (it's illegal in this state -CA - to have a surcharge to accept a credit card but discounts for cash are ok).

It's a matter of customer convenience: if you don't take the cards your customers will go somewhere else.

[BuyingThyme]

17. They might want to shop around for a new processor.

There's no reason to pay a per-charge fee when you're already paying a percentage on the sales.
And some companies charge way too much.

But the merchant is certainly not losing any money by accepting cards. The increased sales BY FAR outweigh the cost.

[defendandprotect]

25. The emphasis should be on what the cost is to consumer ...

because certainly business passes on those costs to us --

What the customer is LOSING overall --

What the economy has to absorb in non-productive/middle-man fees.

[Chan790]

39. Still not true...

there is no increased cost passed on the the customer typically for the use of cards. Generally prices are higher for the same product from cash-only retailers...not vice-versa.

[defendandprotect]

43. Of course the costs are passed on to consumers ...

unless you're one of the altruistic businesses which absorbs costs and doesn't

pass them on in priicing?

I don't think there are any "cash only" stores --

I happen to know one, tho -- small lunch place at shore --

If you don't have cash -- he'll give you lunch and you pay

him next time.

And certainly NO gas stations that are "cash only."

[cynatnite]

20. The expense is passed onto the consumer in most cases...

I won't give up my check card.

[MicaelS]

26. Sorry, but I refuse to carry my checkbook

It's too much of a hassle to write checks. I'm not going to worry about losing my checkbook and all the financial consequences of having to stop payment on 20+ checks ($500 or more). I'm not going to have my DL# and SSN# on them for anyone to see and steal. I've arranged my finances so I have to write one single check a month for rent, and I wish I didn't have to do that. If my apartments took credit cards, I'd use that. The rest of my bill paying is done online. No checks to write and mail and wait on to clear. I can wait until the last minute to pay a bill online. No stamps to buy (and that saves a lot of money there). I'm not going to carry large amounts of cash for fear of losing it. So a bank debit card that acts as a credit card is the only way to do business as far as I'm concerned.

[Waiting For Everyman]

30. Suggest that they give a discount for cash - that might encourage switching.

I get tired of paying for other people's convenience anyway.

[TwixVoy]

32. Well no shit

It's called a transaction fee. EVERY merchant who accepts Visa/MC/Discover/AMEX gets charged it. What do you think Visa runs its network free of charge for fun?

Oh and by the way - it gets deducted at the end of the year as A COST OF DOING BUSINESS for tax purposes.

[w4rma]

36. Just another way that the big banks are ripping us all off. (nt)

[DarbyUSMC]

44. The advantages of the debit card, for someone like me who doesn't get to the bank, are many.

When I pay with it in a store I almost always get cash back instead of going to an ATM. My own banks ATM is too far away consequently, at another bank that exorbitant fee is added on, so I rarely use an atm. Traveling is so much simpler with a debit card. No more travelers checks and you don't have to worry about carrying cash on you. My friend used his in Amsterdam and the machine did the math and gave him the correct Dutch money at the rate of exchange that banks use. That fifty cents charged for using the debit card is well worth it, IMO. When I don't need cash back I use it as a charge card and there is no fee. All in all an amazing system vs. writing a check and having your ID scrutinized as if you are trying to pass a bad check.