In yesterday's mail I get something that appeared to be like a mass mailing from some of the credit card companies that I have cards with. I think it is the usual rate deals...but for shits and grins I open one up to read it.
I guess they all got the approval from someone in government to impose some pretty hefty late fees based upon your balance? Some of these late fees look almost to be as much as the interest would have been for the month...what the fuck is that all about?
I have a few cards...and have come to the conclusion that I will see what happens with the rest of them...and if there are some that do not do this those will be the cards that I keep. The others will get a cut up card mailed back to them, with a "nice" explanation as to why.
I have never been late with a payment in my life for anything, but this is about principal and is just bullshit...
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In yesterday's mail I get something that appeared to be like a mass mailing from some of the credit card companies that I have cards with. I think it is the usual rate deals...but for shits and grins I open one up to read it.
I guess they all got the approval from someone in government to impose some pretty hefty late fees based upon your balance? Some of these late fees look almost to be as much as the interest would have been for the month...what the fuck is that all about?
I have a few cards...and have come to the conclusion that I will see what happens with the rest of them...and if there are some that do not do this those will be the cards that I keep. The others will get a cut up card mailed back to them, with a "nice" explanation as to why.
I have never been late with a payment in my life for anything, but this is about principal and is just bullshit...
My daddy always told me when someone says it's not the money, its the principle of the thing, its the money!
Last edited by sdaddy : August 3rd, 2007 at 06:52 AM.
Reason: typo
It's true.
Once you are late with a payment, you are thrown in with the high risk accounts and the credit card companies can legally charge you a much higher interest rate. That is exactly what they hope you will do. It's how they make money.
Sounds like you carry a running balance on more then just one credit card which although some get into trouble, isnt smart at all. Even the best credit cards carrry rediculous interest charges. In the past I have used my corporate AMEX to charge invoices from my vendors dated 60 day terms , to the amex at the conclusion of the 60 days to get another free 30 days when I pay it in full every month. This gets me 90 days on my money interest free and enough points to fly me and my family first class on every vacation we take throughout the year.
Only credit cards I have ever carried a running balance on are the ones offering those 12month interest free deals which you can not beat. And when I did charge items on cards like those I made it a point to break the amount on the card by the months left interest free and have it paid in full by the promotional expiring date. Credit cards can be your best friend or your worst nightmare, it all relies on the person using them.
Sounds like you carry a running balance on more then just one credit card which although some get into trouble, isnt smart at all. Even the best credit cards carrry rediculous interest charges. In the past I have used my corporate AMEX to charge invoices from my vendors dated 60 day terms , to the amex at the conclusion of the 60 days to get another free 30 days when I pay it in full every month. This gets me 90 days on my money interest free and enough points to fly me and my family first class on every vacation we take throughout the year.
I dont follow you, we discourage our procards at work as we have to pay them in 30 vs a po to a vender with 60-75 day terms. You have to pay the card in 30, unless the vender does not charge the card for 60 days that doesnt work.
Sounds like you carry a running balance on more then just one credit card which although some get into trouble, isnt smart at all. Even the best credit cards carrry rediculous interest charges. In the past I have used my corporate AMEX to charge invoices from my vendors dated 60 day terms , to the amex at the conclusion of the 60 days to get another free 30 days when I pay it in full every month. This gets me 90 days on my money interest free and enough points to fly me and my family first class on every vacation we take throughout the year.
Let me clarify...I never have a balance...or let me say that if may have a balance it is a rarity. I pay everything by credit card, and pay whatever balance off at the end of each month to take advantage of their point/reward systems...so you are right by saying that just pay them and it is not an issue and it should never be one. My point is that regardless of the balance issue this is just crap. I have my statements sent electronically, and what has happened in the past is when a bank is taken over by another the e-mail statements get screwed up as in not delivered...period (you have no idea of the crap that I have gone through when AT&T took over Cingular)...and though when this has happened I get the fees waved it is still my time and the hassle factor.
This time it is NOT the money and it IS the principle with just the idea that they would start doing this. My little experiment is going to see which ones take advantage of this and which ones that do not...and it was funny as I paid the balance off on the card that i use for everything and they have a warning (basically) on their web site that the consumer should just sign up for auto pay for the minimum payments to avoid these new fee's that THEY are choosing to impose...almost like they are trying to blame someone else for this!
I dont follow you, we discourage our procards at work as we have to pay them in 30 vs a po to a vender with 60-75 day terms. You have to pay the card in 30, unless the vender does not charge the card for 60 days that doesnt work.
Dan, say I buy 10k worth of merchandise from your store under 60 day terms. At the 60th day, instead of sending you a check for the 10k I call your accounts payable and give them my amex card as payment in full. Now I have 30 days before having to pay the 10k to AMEX and I just extended my money a total of 90 days interest free and got in this case 10k points on my amex account to boot.
Let me clarify...I never have a balance...or let me say that if may have a balance it is a rarity. I pay everything by credit card, and pay whatever balance off at the end of each month to take advantage of their point/reward systems...so you are right by saying that just pay them and it is not an issue and it should never be one. My point is that regardless of the balance issue this is just crap. I have my statements sent electronically, and what has happened in the past is when a bank is taken over by another the e-mail statements get screwed up as in not delivered...period (you have no idea of the crap that I have gone through when AT&T took over Cingular)...and though when this has happened I get the fees waved it is still my time and the hassle factor.
This time it is NOT the money and it IS the principle with just the idea that they would start doing this. My little experiment is going to see which ones take advantage of this and which ones that do not...and it was funny as I paid the balance off on the card that i use for everything and they have a warning (basically) on their web site that the consumer should just sign up for auto pay for the minimum payments to avoid these new fee's that THEY are choosing to impose...almost like they are trying to blame someone else for this!
Gotcha, it came across a tad different to me in the other post you wrote.
Dan, say I buy 10k worth of merchandise from your store under 60 day terms. At the 60th day, instead of sending you a check for the 10k I call your accounts payable and give them my amex card as payment in full. Now I have 30 days before having to pay the 10k to AMEX and I just extended my money a total of 90 days interest free and got in this case 10k points on my amex account to boot.
Your a merchants dream. Take 60 days to pay and then want to pay with Amex, which charges merchants double the rate of Visa and Mastercard.
Your a merchants dream. Take 60 days to pay and then want to pay with Amex, which charges merchants double the rate of Visa and Mastercard.
It's better then the flip side. Not sure how you run your business but I can assure you that in mine, a paid bill either by CC, post dated check, late, on time are all good things. I get stuck for aprox. 200k year either from dead beats just refusing to pay or bankruptcies netting me, if anything, pennies on the dollar etc. I have never heard a negative comment from one of my vendors for putting a 50k invoice on my amex before. And the same has been done to me and I gladly welcome the payment. If your profit margins are that tight that you need to worry about the fees associated from CC payments, you need to increase your prices.
Dan, say I buy 10k worth of merchandise from your store under 60 day terms. At the 60th day, instead of sending you a check for the 10k I call your accounts payable and give them my amex card as payment in full. Now I have 30 days before having to pay the 10k to AMEX and I just extended my money a total of 90 days interest free and got in this case 10k points on my amex account to boot.
interesting...so you give them a PO and then at the last minute you have them charge your Amex instead of sending them a check. Does the vender add any thing because they have to pay for the Amex charge (what is it .001 per $?)
Amex charges vary, but can be 2.5% - 3.50% of the TOTAL sale, plus additional fee's. Adds up over a year if you do a lot of charges. I have an Internet based business and we pay about 2.75% to Amex of each sale, plus monthly processing fee's. When you have an business like I do where you never actually physically have the card, you are a higher risk for fraud and will pay a higher discount rate.
My point to V10 was that after waiting 60 days for payment, they lose 2-3% of the sale at the last minute. Some business have tight margins and that can add up. Not to mention they are floating you credit for 60 days. But he's right, it's 90 days to pay.
Last edited by ViperJon : August 3rd, 2007 at 10:34 AM.
you always have to figure cost of money in your bids, but if you get three quotes and can get the lowest bidder to hold price and extend terms your golden, I was just wondering if I could use this Amex scheme also. Maybe if you put that into the PO, that payment terms are net 60 then to change # credit card. Venders cant put a hold on the money for 60 days, so they have to have some contract that binds both sides. (ie Purchase order/Acknowldegment) Then they have to make sure the card # you give them is valid for the amount. Sounds tricky with a new vender, but probably ok with a vender you have had a long standing relationship with. Even then on some of the large ($50K +) items I buy, I can see them really resisiting this.
