Posted on 09/29/2008 9:42:02 PM PDT by goldstategop
Here’s a link to an article dated a year ago. There’s words of wisdom in it:
http://www.foxnews.com/story/0,2933,259241,00.html
I use plastic for every McDs transaction—the guy in front of me in any random drive thru line uses credit 50% of the time at least.
I have tried to use credit at Mom and Pop convenience stores and am told I have to make minimum purchases of $5 to do so. If I have the cash, I use it, if I don’t, I walk, and inform them they are breaching the guidelines of their credit card lending policy.
The margins in your local “mom and pop” corner store are often so slim that your use of a credit card for a sale under say $5 ends up costing them money.
Credit cards charge businesses a “per use” charge. At certain levels of sale, it’s a “per transaction” flat rate fee, while for larger sales it’s a percentage.
That’s why I was so shocked when rotten ronnie’s started accepting plastic. They must have gotten some sweetheart of a deal.
You are correct, which is why I avoid going into the Mom and Pops stores! They cut off their nose despite their face! And their prices are usually higher than the places that accept credit cards, so its just a different business model! I think their cash only strategy is probably a simple way out of paying those annoying income taxes.
Not always. Often, even very large and profitable corporations must exercise lines of credit to stay current with expenses. It's about cash flow.
Not too many. McDonalds only started on their second cow last week!
It’s easier to move credit than cash. Kinda like swiping your credit card at the gas pump vs. having to walk in, stand in line, hand the clerk cash, wait for him to make change, and then have a pocketfull of metal rattling around. For McD’s, easier to have a third party say “yeah, we’ll cover that later” than have to move thousands in cash before the deal completes.
¿¿¿Yo que´iro??? ¿¿¿Taco Bell??
It’s 1987 all over again!!!
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