hosted on condor3913
 Mechanical Music Digest  Archives
You Are Not Logged In Login/Get New Account
Please Log In. Accounts are free!
Logged In users are granted additional features including a more current version of the Archives and a simplified process for submitting articles.
Home Archives Calendar Gallery Store Links Info
MMD > Archives > March 2001 > 2001.03.11 > 02Prev  Next

Credit Card Regulations
By John A. Tuttle

Hi All,  I need to post a retraction.  I made a mistake when I said
it was a Federal Law that prohibited charging more to credit card
users [010309 MMDigest].  Actually, as was pointed out by Ken Vinen,
it's the credit card companies (or merchant banks) who made the rule.

(In researching the matter a little further, which I should have done
initially <sorry>, I found that the Fed was trying to put a cap on
the interest rates charged to credit card customers by the credit
card companies.)

Ken also suggested an easy way around the rule was to offer 'more'
of a discount to those paying by cash or check.  Some of you might
remember that I used to do that at Player-Care when I first started
taking credit cards.  I offered a 20% discount for cash and a 15%
discount for credit cards.  During the two-year period that followed,
I watched -- with some surprise -- as sales by cash or check sales went
from 100% to 60%.  Then when I started offering 20% discount on all
sales, I saw cash sales drop to less than 10% in the year that
followed.  Now, almost no one pays by cash or check.

I suppose what I should do now is point out to all my customers that
although the information at the website says they're getting a 20%
discount, they're actually getting a 22.25% discount if they pay by
credit card.  And accordingly, I should install some little note on the
web page which reads, "If you would prefer to pay by cash or check, you
can save an additional 2.25%."  I wonder how many people will take
advantage of the lower price?


John A. Tuttle

(Message sent Sun 11 Mar 2001, 13:21:13 GMT, from time zone GMT-0500.)

Key Words in Subject:  Card, Credit, Regulations

Home    Archives    Calendar    Gallery    Store    Links    Info   

Enter text below to search the MMD Website with Google

CONTACT FORM: Click HERE to write to the editor, or to post a message about Mechanical Musical Instruments to the MMD

Unless otherwise noted, all opinions are those of the individual authors and may not represent those of the editors. Compilation copyright 1995-2023 by Jody Kravitz.

Please read our Republication Policy before copying information from or creating links to this web site.

Click HERE to contact the webmaster regarding problems with the website.

Please support publication of the MMD by donating online

Pay via PayPal

No PayPal account required

Translate This Page