Quick question about credit cards

aha
So, I walk into the store and ask—can I put this on my Diners Club card for six installments?
How does that even work? How do they regulate it?
Does Diners just cover the cost upfront, and then I pay them back later?
Or what?

Look, I can't say for certain since I don't actually carry a Diners Club 😬 , but that’s more or less what I was told

thanks 🙂
I’ve got more questions 🙂 (sorry, Kimberly Nguyen, I have to bug you—I get the feeling you know everything 🙂
so
When a store says "no interest" if you pay with an American Express, that’s just the store's own promotion, right?
If I pay the full balance with my American Express immediately, but then next month they mail me a bill with a 5% charge... then I end up paying interest anyway.
Am I thinking about this correctly?

Oh, please, as if I’m some kind of genius... 😬

Look, you have to understand there's a massive difference between a standard American Express and a revolving American Express.

When you're using a basic American Express, your bill hits based entirely on whatever your billing cycle says. If you actually want to pay for something in installments, you can't just swipe and walk away—you have to pull up the cashier at the store and explicitly ask them to set up a payment plan. It's such a hassle.

But when you're using a revolving card? You don't have to say a single word to anyone. You just hand over the card, the clerk swipes it, they get their money, and that's it. You just settle up with American Express later according to your agreed terms, plus whatever interest they tack on.

So, I'm arguing with my aunt about whether a standard green American Express card even allows for more installments—am I right to be pushing back?
And who knows, I might end up losing out on a cash discount in the process. 😢

Regarding that cash discount—it didn't really apply if you were using a standard debit card or even a revolving credit line. It was strictly for cash or a basic Visa/Mastercard debit card where the funds pull directly from your checking account. As for installment plans, honestly, it’s entirely up to the individual shop—there isn't some universal rule. Some places might let you stretch it over maybe three months, while others—if they're feeling generous—might go as high as 24.

2cool4school said:The cash discount doesn't apply if you're using a card, whether it's a standard debit or a revolving credit line.

That’s spot on. That discount is strictly for cash or money orders.

2cool4school said:It’s only for cash or a Visa debit—you know, that card where the funds come straight out of your checking account.

The part about the cash is right, and honestly, some places will even give you a break if you use a check.
A Visa debit isn't a credit card; it's a debit card.
And look, the second they swipe that card through their terminal, you lose your right to that discount. Why? Because every single "swipe" costs the merchant a processing fee from the bank. If they give you a discount on top of that transaction fee, they're basically throwing money away! They're screwed!
Sure, to us customers, it feels like we're using "cash" because the money leaves our account immediately, but at the register, the merchant is still getting hit with those fees. It's not the same thing!

2cool4school said:How many installments a shop will let you pay in really depends on the store; some offer up to 3 months, while others might go as far as 24.

It all boils down to whatever kind of contract they signed with the credit card processor.

zvonkotelefonko said:So, basically, if I'm using a standard, say, green Visa card, I’m going to end up bickering with my aunt over whether she'll let me pay in installments—am I right?
And while we're at it, I might just lose out on that cash discount too. 😢

Look, installment plans depend entirely on the agreement they have with the card issuer, and you lose the discount because you aren't handing her cold, hard cash—as my kid would put it, "real paper money."

Dunkin' has actually stepped up its game lately. You see more places offering to split payments into 6 or 12 interest-free installments using Dunkin'. It’s a decent enough perk. But since it’s limited to those specific terms... I recently picked up an amplifier for my $100, and to sidestep the interest charges entirely, I’m just paying $17 a month instead. It might sound a bit ridiculous, but it beats handing them extra money in interest...

zvonkotelefonko said:I fall into that category of losers who don't own a single credit card.

Look, I feel compelled to weigh in here.😉
I don't carry any credit cards either—and I certainly don't consider myself a loser because of it. To be honest, I just choose not to have them. You also have to realize that there are plenty of losers among those who *do* use credit, perhaps precisely because they rely on it. They end up paying much more for goods than they realize—it’s just a hidden cost they haven't accounted for.🙄

Trust me, you don't even need a credit card for this.

Marc said:I don't own any credit cards either, and I don't consider myself a loser because of it. I just don't want them. You have to realize there are plenty of losers who actually carry credit cards, and it’s usually precisely because they have them.

👍

A credit card issuer and a retailer enter into a specific agreement, and under the terms of that contract, a certain fee is paid for the use of those cards—essentially a transaction fee. Depending on how that deal is structured, you might find that a store offers you interest-free installments over five months, or you might be denied entirely. It also dictates whether your card is treated similarly to cash (whether we’re talking about a credit card or a standard debit card). Take a recent example: at Target, you get a discount for paying with cash—and by cash, I mean actual paper currency—but you also receive a discount for using an Amex credit card, simply because they’ve struck a specific deal with American Express. However, if you try to pay with a Maestro card from any other bank, you won't see that "cash" discount, even though debit cards really should be treated like cash since the money leaves your account instantly and hits the merchant's account just as fast... I'm not sure if I've laid that out clearly enough...

Now, regarding who is actually being foolish here... there is a bit of a misunderstanding in America regarding what cards actually represent, especially credit cards. Around here, most people just use credit cards to scrape by from one payday to the next. Some use them as a way to live far beyond their means until the bank eventually comes knocking and panic sets in; others just use them to avoid carrying around thick wads of paper in their pockets. Honestly, cards are a fantastic tool if you aren't spending money you don't have and if you possess even a modicum of self-control. You don't have to wait in line at an ATM only to lose your mind when it's empty, you don't have to queue up at a Chase branch just to withdraw more than your daily limit, and you don't have to worry about someone swiping your funds for a new fridge or washing machine (assuming you don't leave your PIN written right on the card, but then, that's on you, isn't it?). Plus, you can shop online, order things from overseas, and when you travel abroad, you don't have to mess around with foreign currency exchanges. You get the mid-market exchange rate and you don't have to stress about whether the local bank or a kiosk will give you the exact amount of foreign currency you need—like back when a colleague and I traveled and spent half our trip just trying to track down enough French Francs... And, if you truly run short, you can always lean on the revolving credit a month later. But, if you lack discipline—if you've been perpetually living in the red for your entire paycheck for years on end—then that card is nothing more than a fast track to ruin (much like my neighbor's situation...).

Figures... I should have seen this coming.
A buddy of mine was in Nice a week ago and left his credit card at the hotel front desk as a deposit—you know, just in case he raided the minibar or something.
Well, turns out he spent the weekend flying around on four different airlines 🙂
and now his balance is sitting at 16 $0.00

dustyjackal9, thanks for clearing that up 🙂

He left cash as a deposit for the minibar? Is he serious? Has he never heard of just swiping a card? Some people are seriously paranoid about handing over their credit info.

So, what even is a swipe?
Look, I’ve never heard of some "swipe" thing in my life. 🙂

Honestly, I don't even have a clue about this one🙂

So, "swiping" is basically just sliding your credit card through that little reader thing. You usually see it happening at hotels—or even upscale restaurants—mostly just to hold your spot or act as a guarantee for the bill. Once you check out of the hotel and settle up everything you owe, you get your card back. 😛

Bell said:Just as I suspected...
A buddy of mine was in Nice last week and left a credit card at the hotel front desk as a deposit for potential minibar charges.
Well, he just realized this weekend that he’d flown with four different airlines 🙂
and now he’s sitting on a $1,600 balance. $0.00

He doesn't actually have to pay that. He needs to report the fraud to his card issuer, tell them the hotel misused his info, and then call the hotel to report the staff.
When you use major banks, they don't charge you for those kinds of fraudulent transactions; they go after the scammers instead.
Those companies have their own investigators, lawyers, and all that.

Regarding your question, Bell, it really isn't worth using a credit card if you can't clear the balance within 30 days. You'll end up paying two or three times what you originally spent, and you'll be stuck paying it off for years because of the interest.

Better to find a low-interest loan or something similar. Credit cards carry daily interest, and it just piles up. 😲
Credit card rates are probably around 18%—I'm not entirely sure, I always pay my balance on time. I actually get cash back rewards for using my card, but I know people who have been struggling for years to pay off a single balance. They can't seem to break out of that vicious cycle, and then you have collectors calling and harassing them constantly... it's awful.

PS:
Which hotel was your friend staying at?