Does anyone else see this coming?

[ShellyLynn3630]

I generally use my Disney Visa to pay for almost everything we buy, every bill we pay and such to earn rewards to help supplement the cost of our vacations. And boy does it help. Now there are a few bills that I really can't pay with the card and not get charged a percentage fee to use it which pretty much defies the purpose of trying to get a little bit back. I feel like in the future more and more places may start charging more if you use any type of credit card to pay for your purchases or to pay bills thus making earning disney rewards too costly. Does anyone else see this coming or already seeing more of it?

 

[MinnieVanMom]

Hi Shelly,

I don't know about businesses charging more for the use of the card as they most likely already factored the fees of the CC into the cost of the item. So the expense is offset by the income.

However, the Disney Visa card that I carry is the highest interest rate of any cards. So I must make sure that I have the money in the bank to pay for the purchase before I buy. Then I pay off the bill online within days. I get the rewards and no interest.

I don't think there will be a change in businesses but remember Cash in King!

 

[ShellyLynn3630]

Oh, I pay mine off every single month as well. So no money made by chase from me, but right now for example, I cannot pay my utilities bill with it without be charged about four or five bucks more, and then I would'nt get but about two disney rewards off of it. Pointless. So I just use my checking account for that. If I want to pay my auto insurance online with it, same thing. It sucks. I just feel as though more of this may be coming in the future. And I won't be getting as many rewards for our vacations.

 

[MinnieVanMom]

I hear ya Shellie,

I have noticed that because we don't have a landline our DSL/phone company charges us $25 more each month for internet. Dish Network charges more if you don't sign up for HD! There are little fees everywhere for doing things to try to save money.

When you get it something that works well, stick with it and let me know!

 

[speedyf]

I tend to agree more with Minnie on this one. Most retailers have that % fee built into the price of it's products. I think they build it in based on everyone using a credit card....so, if you do pay cash, they are probably making a little more profit on you compared to the person who uses credit.

I seem to think that any company with competition would likely move towards this way of thinking as well. A utility company may not have as much competition as say a restaurant, so they will probably be more reluctant to take credit cards and have to eat the fees on them.

I do see another trend coming. More and more people are using their credit cards for bill paying, so these people are using their bank accounts less because of rewards. Well, my bank just started offering a rewards checking account. I now accrue miles for every check I write, ATM withdrawl, online bill payment, etc. I can cash in the miles for cash, gift cards, other items, or actual airline miles. Of course, our rewards system is a set number of miles....like 5 miles for every check you write, 5 miles for every ATM withdrawl, 10 miles for every online bill payment, etc. I can see where the bank accounts are starting to get competitive with rewards to earn your business not only away from using your rewards credit card, but also to lure you away from other banks.

My bank was bought out by Capital One bank and they just started offering this feature. I'm sure more and more banks will start to offer this as well...just to compete.

I'm really tempted to go to the ATM everyday just to withdraw $20 and earn miles every day...lol....

Here's a link for reference....
http://www.capitalone.com/bank/checking/rewards_checking.php

Speed

 

[ShellyLynn3630]

Thats what I was thinking when I read this, getting 20 bucks out of your atm everyday. WOW

 

[speedyf]

I figured out that I get $50 cash for every 10,000 miles I earn. I earn 5 miles for every ATM withdrawl, so the math works out to 2.5 cents per ATM withdrawl. Since I can probably earn more than that by just clicking on e-mails from Quickrewards or another rewards website, it's probably not worth the effort to make an ATM withdrawl every day (that would be a little over $9 per year if I made a withdrawl 365 days in a year).

Of course...this is just an initial offering. As more banks come onboard with rewards in the future and start competing, I can see the rewards going up to compete closer with credit card rewards.

Speed