store credit cards a thing of the past?

Where you can talk about store credit cards, like gas station cards, department store cards, etc.
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Mogul of Pineapples
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store credit cards a thing of the past?

Postby Mogul of Pineapples » Thu Jul 31, 2008 9:27 pm

I don't use these, but has anyone else noticed how store credit cards are starting to disappear? You rarely see store credit cards which can only be used at that store. Today they are all Visa and Mastercard and issued by Chase or some other big bank. The day of independent store cards may be becoming a thing of the past. I read in the paper that the reason these retail chains sell out their credit divisions to someone like Chase is it gives them a big chunk of cash, it's just like selling off an asset.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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magyar1045
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Postby magyar1045 » Fri Aug 01, 2008 7:45 am

Store cards can easily become a thing of the past. They will "outsource" them to big big name banks - running the approvals process, sending out the cards, billing, etc. Why?? Bacause they're too cheap to hire a sufficient # of staff. By outsourcing the operation they save on wages, employment taxes, and the "fees" that the stores pay these banks are probably significantly lower.
And the big banks outsource the call centers to India, Pakistan or some other low wage countries.

Floppster
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Postby Floppster » Mon Sep 29, 2008 9:46 pm

magyar1045 wrote:And the big banks outsource the call centers to India, Pakistan or some other low wage countries.


That is exactly the reason why I stay away from Store Credit Cards and Capital One :D
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955

Herman65
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Postby Herman65 » Tue Sep 30, 2008 5:06 am

Floppster wrote:That is exactly the reason why I stay away from Store Credit Cards and Capital One :D


Another good reason to stand clear of store credit cards is the insane interest rates and we won't even talk about penalties.



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