Credit Card Forum
  1. #1
    Mogul of Pineapples
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    Default store credit cards a thing of the past?

    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. Regardless, anything I say is my honest opinion.

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    Reply With Quote Reply With Quote     Jul 31, 08, 7:27 pm
  2. #2
    magyar1045
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    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.
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    Reply With Quote Reply With Quote     Aug 1, 08, 5:45 am
  3. #3
    Floppster
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    Quote Originally Posted by magyar1045 View Post
    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
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    Reply With Quote Reply With Quote     Sep 29, 08, 7:46 pm
  4. #4
    Herman65
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    Quote Originally Posted by Floppster View Post
    That is exactly the reason why I stay away from Store Credit Cards and Capital One
    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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    Reply With Quote Reply With Quote     Sep 30, 08, 3:06 am
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