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When a consumer uses a credit card to make a purchase, the merchant does not receive the full purchase amount because a certain portion of the sale is deducted to compensate the merchant's bank, the bank that issued the card, and the card network that processes the transaction. According to Federal Reserve analysis, total costs of accepting credit cards for merchants have risen over time as consumers use cards more. Some consumers have benefited from competition in the credit card market, as cards often have no annual fees, lower interest rates than they did years ago, and greater rewards. However, consumers who do not use credit cards may be paying higher prices for goods and services, as merchants pass on their increasing card acceptance costs to all of their customers. For merchants, the benefits of accepting credit cards include increased sales and reduced labor costs.
Monthly Archives: August 2006
529 Plans set to lift off as 2010 expiration date overhang is lifted
These are the the wise words of Jim Boyle, President of College Parents of America, that always seem to elicit a smile whenever he speaks to a group of parents of younger children. Here are some of Jim’s other comments:
“I guess the simplicity of the line, and the fact that [...] Continue reading
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Who Needs Harvard?
This is the August 21st cover story of Time Magazine. The article notes that ‘competition for the Ivies is as fierce as ever, but kids who look beyond the famous schools may be the smartest applicants of all’.
This is excellent advice. Many students will greatly benefit by flourishing at a smaller [...] Continue reading
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