Hi Dick,

This is becoming off-topic for the bn list, but I'll try to make it as
brief as possible, see answers worked in between your questions in your
message beneath:

Mr. Riana,
Thank you for the explanation.  The reason I am asking is that I used my

credit card when I bought gasoline in the US.  The price of gasoline was
the 
same, no matter if it was paid for by cash, check, or credit card.
Then, 
when I would rent a room or buy food or anything, I always used my
credit 
card.  I was never charged extra for using my credit card, I checked the

purchase against the deductions from my credit card.  If Visa, my credit

card company, charges the store 3 percent of the purchase price, then
the 
store would make 3 percent less on my purchases.  Therefore, why would
the 
store allow purchases to be made by credit card?

A: Because cheques can bounce and is not credited to the beneficiary
immediately, while credit card purchases are.  Also it is more
dangerous, definitely in my country, for people to walk around with
large amounts of cash, as people are often mugged, especially in the
cities and lastly: beneficiaries has to pay still higher bank fees on
depositing cash into bank accounts, it being a security risk.  That is
why many companies take that percentage into account when they establish
their purchase price and can either score on cash payments, or decide to
provide discount to cash customers.

The only time the Visa company charges me money is when I go more than
30 
days without paying off my account.
A: Yes, but that is interest on the overdraft of the amount, charged by
the financial institution, which is also relevant on other loans, or
overdraft facilities on cheque accounts and is between you and the
financial institution, not the beneficiary of your purchase.

Riana van der Walt - [female]
Dick Myers


From: "Van Der Walt Riana" <[EMAIL PROTECTED]>
Reply-To: Braillenote List <[email protected]>
To: <[email protected]>
Subject: [Braillenote] Credit card purchases
Date: Thu, 10 Mar 2005 09:09:10 +0200

Dear List,

Banks charge companies who uses their facility to provide the option of
credit card convenience to such company's customers.  The percentage
differ, but in South-africa it's five percent of the purchase price.
This is a total different issue from interest.

Hth
Riana

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