Debit Card Discounts vs Credit Card Rewards

Debit Card Discounts vs Credit Card Rewards:

A legal agreement between merchants and Visa and MasterCard has removed a credit card network rule prohibiting merchants from charging credit card purchase fees. While this is a theoretical possibility, I do not think we will see supplements any time soon.

We are more likely to receive discounts on debit card purchases. While the lack of discounts and surcharges is economically the same, they differ legally. People also react emotionally differently to discounts and surcharges.

The supermarkets where I have been shopping for a long time give away 5 cents for every bag you bring to the store. A very small percentage of buyers chose the discount. In fact, the vast majority paid 5 cents for every bag they took out of the store. They probably agreed.

The municipal ordinance has therefore been amended. The city has introduced a surcharge of 10 cents per bag. Now I see that most people carry their own suitcases. When people forgot their bags and bought small things, they carried things in the arms of the car instead of paying 10 cents for a bag.

5 cents against 10 cents does not matter. Pay more than getting no discount. Discounts are not as effective as a supplement to change people’s behavior. But stores prefer to just raise prices and then give discounts to make people feel better and not complain.

Last year, I signed up for a Target REDCard debit card. Offer 5% off purchases on Target and target.com and free delivery on target.com with no minimum purchases. Doel’s debit card is known as a disconnected closed-loop debit card. Closed-loop means that the map can only be used in one place (destination). Disconnection means that one entity issues the card (Target), while another entity maintains the underlying checking account (my credit union).

Focus patterns on controls. Using the Doel debit card is like writing a check on your bank account. They debit your bank account electronically. The bank account is pre-designated. Using a debit card is faster and cheaper than writing a check.

I did not sign up because I buy so much from Target that it is worth it. I signed up because I wanted to encourage debit card discounts. If the number of cardholders is a KPI for this program, I add one to the total number.

Doel’s debit card works perfectly. I get the discount on time. Although there is also a Target store credit card that offers the same benefits, I opted for billing because I did not have to worry about an account.

I want Target to add the card to their mobile app. Now I can add a Target gift card to the mobile app. After payment, the gift certificate will appear on your phone as a barcode. The cashier scans and that’s it. For a card I do not use often, such as the Target debit card, it makes sense to add it to a mobile app. You do not have to carry the physical card with you all the time and still get the benefit when you need it.

My next wish is to open the loop: get other stores to join the program and offer discounts. Having a separate card for each store becomes complicated, even on a cell phone. If a program can unite many stores, all stores will benefit from it.

If you get a discount right away, you do not have to pay the full price and get it back through credit card rewards. I think we will have more debit card discounts than credit card surcharges. An easy way to implement this discount is to make loyalty card discounts in supermarkets dependent on the card or cash payment. Or airlines only allow flight miles if you pay with your own debit card or card.

A legal agreement between merchants and Visa and MasterCard has removed a credit card network rule that prohibits merchants from charging credit card purchase fees. While this is a theoretical possibility, I do not think we will see supplements any time soon.

We are more likely to receive discounts on debit card purchases. While the lack of discounts and surcharges is economically the same, they differ legally. People also react emotionally differently to discounts and surcharges.

The supermarkets where I have been shopping for a long time give 5 cents off each bottle.

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