Which credit card offers the best cash back reward program?
Ziggy Zaga, I’m sure that is true for Walmart, but it isn’t true for small business. It probably isn’t true for medium sized business either, judging by my local computer store (it has about 10 locations) and the Chinese grocery stores I go to (typically 5 cashiers at any one time, and maybe 20-30 total employees). There are a few factors. For one, with cash there is a risk of fraud. That risk is close to zero for small business (relatively hard to steal from yourself or your family). Very large businesses can negotiate the credit card fee pretty effectively, so for Walmart 1-3% is probably more like 1.25-1.5%. For businesses with sales around $100,000/year the fee is probably more like 2.5-4%. Obviously nobody with sales around $100,000 is using an armored car service. I don’t think the medium sized businesses I cited use such services either, but I don’t know for sure. Anyway, as for grouse and kindall with the “then stop taking credit cards” argument… That may apply in certain sec
One more thing, while I am all for getting the best deal you can, every time, I think it is worth pointing out how sleazy these reward schemes are. It is a way to make consumers insist on using credit cards on every transaction, ensuring profit for the credit card company, and loss for the retailer. Do your local mom & pop stores a favor and use cash! posted by Chuckles at 9:58 AM PST on June 14 [!] i read somewhere that if everybody stopped using cash and only used credit cards it would work out better for retailers, since the 1-3% transaction charge adds up to less than what it costs to pay wells fargo or whoever to send an armored car to the store to handle the cash.
If you don’t mind driving GM vehicles, the GM card will give you 5% credit toward a new car purchase (except Saab or Saturn). There’s a limit per model of $1,000 or $1,500 (maybe a few are $2,000). The credit can be used in combo with all other discounts, etc. So you can use this card until you have the credit for your next car saved up, and then switch to something else. A few early adopters of the GM card are grandfathered into no-limit credits, which means if you charge enough you get a free car from time to time.
The FlyerTalk Credit Card Programs fora are good places to ask this question, and I’d be willing to bet you’d find more-informed answers there than here. One principle you need to consider: take out the value of any annual fees from your expected reward when comparing programs. If you can use non-Visa and MasterCard programs for at least some of your purchases, then I have heard the best things about Diners Club, and the Amex Starwood Preferred Guest cards. The best thing about these cards is that the points you receive are flexible and can be converted to mileage in many different frequent flier programs at attractive rates, or hotel rooms at even more attractive rates. You can also use your points to buy all kinds of junk (well, I consider it junk, but someone’s buying it). If you are looking for a Visa or MasterCard, the rewards programs there are usually more closely connected with a single airline program, so it would
