Saturday, February 21, 2009

credit Card woos.

Credit Card companies can cut costs in the way called credit Card Swiping Cafe.
With a majority of Credit card companies having losses, if I am not wrong, then this is a good idea. I believe, this will definitely result in savings to the companies
The Credit Card companies value the currency or money in terms of plastic, so it would not be wrong to say that it values the money as good as peanuts(credit repair).

So even if the Savings for the Credit Card companies are in peanuts from the Credit Card Swiping Cafes, the Credit Card Swiping Cafes (CCSC) ought to still become a reality.
So a better alternative for them would be a swiping cafe setup at quite a few places so that the expense of the Credit Card companies can be reduced(clean credit).

Will it not make sense. If the Credit card companies want to popularize the use of Credit cards they would have to make an investment for the long term.They can't wait for every vendor to have a Credit card system or they will never grow their business.

Why should consumer pay 1% extra fee anyways? He is already paying exorbitant interest rates. He might as well pay cash and save 3%(fix credit).

This is an interesting idea, unfortunately, I don't think its gonna work.In a country where people die of starvation, peanuts are sometimes the only bread and butter for the day. So peanuts should be valued.
But this would result in some savings for sure.Now what exactly is a Credit Card Swiping Cafe:

Normally a Credit card companies takes around 2% in every transaction and the customer gives or rather pays 2%.
Instead, in this the customer pays 3%, 2% of which is to the Credit Card Company and 1% to the person who provides the swiping service. CCSC are those which would be set up like the cyber cafe. The person running the CCSC will generally have types of people entering in his premises.
a) the business person
b) the end-user
c) the law-enforcing agencies
The CCSC will have at least one Credit card swiping machine. The end-users who wish to buy a particular product or service {nowadays service is also regarded as a form of business} from the business companies, selling the product and/or service will visit the cafe along with the business owner or the Business Owner can send someone.
Both will carry their identity proof, the end-user will get the card swiped at the CCSC at an extra 3% and make the payment to the business owner.
The CCSC owner will note down the identification details.why would the seller not have a card terminal at his own premises?The seller most definitely can but he need not at an urgency.
I believe all Credit card companies are complaining of not doing good business.Add to it the fact that they use very harsh steps on people to extract money.Now the swiping machines do cost something and are not free.If the Credit card companies give it for free they are at a loss. Also the Credit card companies also provide the service on the swiping machine free of cost to the seller.So a better alternative for them would be a swiping cafe setup at quite a few places so that the expense of the Credit Card companies can be reduced.


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