08-09-2013, 10:18 AM
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Banned
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Join Date: Dec 2007
Posts: 5,061
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Quote:
Originally Posted by JB3
I was referring to cash vs check personally. I prefer not to purchase things with a credit card apart from online to build my air miles related to personal finance.
My experience from a business end has been that endlessly people want to be paid cash vs a company check with a business purchase when its like 2k or lower, and in that circumstance, there is usually a blatant statement saying they will drop the sales tax charge if I do cash, ect ect. Its usually pretty clear that this payment is off the books 'wink wink'.
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I edited my original post, please reread. Everything comes at us from a different and unique vantage point. The Banks began a slow but effective marketing campaign when the first Diners Club charge card came into existence. They saw the advantage in getting people to say 'charge it' versus using cash. It is, after all, so easy to say, isn't it? Then, they set up merchants accounts with business owners which earns the bank an additional fee. So, the bank gets it twice, by a merchant account fee and the carrying charges and interest fees on the purchaser/customer.
IF you were a banker, which would you want? Cash customer which makes you very little or credit card customer? I know which one I would choose. There was a time when there was no such thing as a "Credit Card". Banks simply had to make it on consumer lending, car loans, house loans, etc. BUT, when credit cards came along, the banks saw an opportunity to NAIL EVERYBODY BUSINESS OWNERS INCLUDED in the form of merchant account credit card fees.
Your neighborhood bank known as "First National Bank of BILLING".
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