Proposed fees take advantage of loyal customers
Sometimes, age old advice changes. If you think back to when you got your first credit card you likely had someone telling you three things: Only use the card in emergencies, don’t use the card too much because that’s how you get in trouble, and always, always, pay your bill on time.
Leave it to the current state of the economy for credit card companies to realize they don’t make nearly as much money as they’d like on people who follow the above advice. Their best customers are those that they haven’t figured out how to squeeze as much profit out of. And what better way to increase their profit margins, than to add additional fees for people who behave as above.
Proposed fees for not using the card, spending too little on the card, and paying your bills on time might be coming down to consumers shortly. That is, if the government doesn’t stop them from what seems to be a ploy to just make credit cards more expensive to everyone now that they have become commonplace.
If these fees were to become reality, we think it would probably be a good time to just go back to using debit cards, or scary as this sounds to a college community that doesn’t understand anything that isn’t digital:cash.
What a revolution that would be, switching back to the exchange of money that most directly financially benefits the consumer and the seller, in cutting out the middle man that just sends numbers over the wire. The money they would lose in credit card fees alone is outrageous, but also gone would be their lucrative profiles of consumer spending habits that they can no longer “share” with their “partners.”
Yet many would prefer not to lose the convenience of the fast transaction, and so it’s not likely that credit cards are going to stop being used anytime soon. So credit card companies, let’s rethink this idea. Find a different way to improve your bottom line. We realize times are tough, but pity on any sort of financial institution is a bit hard to muster.