As if it weren't bad enough that they want me to pay for your mortgage ...

[Tex]

... now Obama wants me to pay for your high interest rate credit cards too. Via Powerline:

Historically, it's been a truism that banks don't make money on credit card customers who pay off their bills every month. Instead, revenue has been raised disproportionately from the banks' more feckless customers, in the form of fees, penalties, and--most important, presumably--the high interest rates credit card companies charge on balances. Of course, that is not necessarily unjust, as these same feckless customers cause the most trouble and expense to credit card companies, not to mention the most losses when they can't pay their bill and default.

All of that is about to change, as Congress has just enacted new credit card regulations intended to limit banks' ability to collect money from distressed or incompetent customers. he New York Times explains the consequences:

"It will be a different business," said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation's biggest banks. "Those that manage their credit well will in some degree subsidize those that have credit problems."

Wonderful.

[MikeWaters]

I'm thinking it is the other way around.

The idiots were subsidizing my use of credit cards.

I got all the perks and convenience of a credit card, never paying interest because I carry no balance, getting air miles and cash back, all paid for by suckers who carry balances at 25% interest, and now what? They will probably cut back my benefits.

[BlueK]

Originally Posted by Tex

... now Obama wants me to pay for your high interest rate credit cards too. Via Powerline:



Wonderful.

Banks don't make money from their good customers? What a load of crap. Of course they do or they wouldn't even offer cards. Even a retarded monkey can understand that. They charge fees to their merchants for every single purchase. I understand their opposition to Obama's bill, but that piece you cite is nothing but self-serving garbage that just rings untrue.

[Tex]

Originally Posted by BlueK

Banks don't make money from their good customers? What a load of crap. Of course they do or they wouldn't even offer cards. Even a retarded monkey can understand that. They charge fees to their merchants for every single purchase. I understand their opposition to Obama's bill, but that piece you cite is nothing but self-serving garbage that just rings untrue.

Nonsense. It's neither a "load of crap" nor "self-serving garbage." Banks do make money off merchant fees, but that's not what the Powerline guys are talking about. They are referring to direct income from consumers, such as from fees and finance charges. A person who carries no balance provides no such income to a credit card company.

[ChinoCoug]

Originally Posted by Tex

Nonsense. It's neither a "load of crap" nor "self-serving garbage." Banks do make money off merchant fees, but that's not what the Powerline guys are talking about. They are referring to direct income from consumers, such as from fees and finance charges. A person who carries no balance provides no such income to a credit card company.

so?

[Tex]

Originally Posted by ChinoCoug

so?

???

[BlueK]

Originally Posted by Tex

Nonsense. It's neither a "load of crap" nor "self-serving garbage." Banks do make money off merchant fees, but that's not what the Powerline guys are talking about. They are referring to direct income from consumers, such as from fees and finance charges. A person who carries no balance provides no such income to a credit card company.

They make money off people like you or me or they wouldn't offer the service. Who cares how they do it.

[ChinoCoug]

exactly

[Tex]

Originally Posted by BlueK

They make money off people like you or me or they wouldn't offer the service. Who cares how they do it.

Actually, I care a great deal how they do it. Right now I pay no service fees of any kind, because I carry no balance. I don't want that to change.

You're talking about the money they make off the merchant, which is irrelevant for this discussion.