Many of us have heard the different number and types of scams that are currently happening throughout the world that are allowing for the rich to get richer and the poor to get poorer. Unfortunately what we do not often realize is that the everyday use of the credit cards that we have in our purses and wallets can often have this same affect.
The Fee To The Merchants
As consumers who use our credit cards on a daily basis we do not realize and have probably never thought about the merchants. The merchants are the business or store you are making a purchase from. These merchants are required to pay a fee for the processing of the credit card every time a customer uses a credit card at the business. These fees can range from as little as one percent to as high as four percent of the total amount of the purchase price of what is being bought. Because of this fee being so high the business is forced to increase their prices to make up for the amount they are spending due to credit card users.
What Studies Show
People always assume that if you are poor you will always pay in cash or if you are paying with a credit card that the credit card bill will not be paid in a timely manner. It is also assumed that people who are considered wealthy or rich always pay in cash. In studies that have been completed it has been shown that there is not a difference between how the rich and the poor pay for their items.
In the recent years there are been new and different types of programs become available for credit card users. These are rewards that come to you for using your credit cards. Credit card companies use these rewards to keep users on using the cards that they offer to them. For example some credit card companies will offer cash back after you spend so much. Many times it is around two to four percent of the amount spent. When you think about it these rewards are not costing the credit company anything because they are rewarding the customer what they are being paid by the merchant to have their customers use there credit cards at the place of business.
There are other types of reward programs available. If you are shopping for a new credit card and are interested in a rewards program you will find that the decision might be overwhelming. Other types of reward programs are ones that offer airline miles for so many dollars spent. Others might offer you material items such as an iPod, cell phones, luggage or just about any other item you might think you want. However in order to get these items it will be necessary for you to use your credit cards often and therefore spending more on other things to get what you want as a reward. Many times these items cost less than what you need to spend so it is recommended that you be careful. There are also rewards that will give you a discount on gasoline if you go to certain fueling stations and charge the gas to your credit card.
There are many different views as to the poor staying poor while the rich get richer. This is not only happening in the world of cash but in the world of credit cards as well. Many do not see it because we go on about our daily business as if nothing in the world is evolving.