tag:blogger.com,1999:blog-7404681916600925033.post3081632797999686591..comments2009-04-28T19:45:18.515-05:00Tony Cooksonhttp://www.blogger.com/profile/12565713889808330198noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7404681916600925033.post-85313899717713112552009-04-28T19:41:00.000-05:002009-04-28T19:41:00.000-05:00Great interpretation of the us of store credit cards. <br /><br />However, one thing that I don't believe anyone mentioned is the fact that at most big name stores, the cost to the store, of any given customer paying for something is cheapest with a store branded credit card. That is the % fee that the credit card companies or banks that own the credit card charge Macy's is higher than the % charged on a Macy's card. Paying with cash also is costly because the store has to higher a armored car service or an employee to manage the bills and change in each register. Checks also cost some labor expense in handling the paper work (though harder to trace most likely).<br /><br />Therefore, the smallest cost per dollar per transaction for big name stores is using a credit card issued by the company. <br /><br />For example Target Inc. is one company that I know realizes the smallest transaction or sales cost per dollar, when someone purchases something with a Target card than any other form of payment. <br /><br />From speaking with Target employees, I have heard that this is the main reason they promote their card sooooo much.<br /><br />Other than that. Great analysis Tony.Mitchhttp://www.blogger.com/profile/17439566533142292498noreply@blogger.com