There are many subjects we can touch on. Credit Cards are one…
Like every business, everything we are able to provide to the customer has a cost associated with it. Our pricing policy is essentially just to keep prices as low as possible on all the products we offer. Possible, however, means that we have to make enough to keep the store open by paying bills – just like everyone else.
So what does this have to do with credit cards? Well, think of them as a service with a cost. Credit card processing companies allow us to take payment by credit card instead of cash or debit. However, the cost associated with credit card payments is a percentage of the revenue generated. Two or three percent doesn’t sound like much, but its got to come from somewhere.
The more credit cards we are receiving as payment, the higher the amount we have to pay to the credit card companies. Therefore the fee ends up reflected in our prices, which is really just to say that the more our customers use credit cards, the less we are able to resist inflation.
That’s not the end of the story for credit cards. What about you, as an individual. You’ve seen your credit card bills, there’s this thing called "minimum payment". This is how they make the big bucks. If you don’t pay the amount in full, you’re starting to accumulate interest at a very high rate. Comically there is a section to help you figure out how long it would take to pay off the entire credit card bill, have a look at what it says on your own bill, its worth a laugh (and maybe a cry too!).
So while credit cards are a good tool when used sparingly and paid promptly, they still are a service that is costing your money. So the next time you consider using your credit card, remember that you are adding to the cost of the products you are buying, and making yourself vulnerable to those crazy high interest rates.
Help us keep our prices the lowest in the city by using your credit card sparingly.