6
Getting Personal
Getting Personal
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At the end of Friday's show, you said that you welcomed rants about our bank experiences. I must say that I've got a RAVE about my bank. I've been banking with USAA since 2000 and cannot be more pleased with them. They've discovered and mitigated potential fraud on my bank accounts/credit card before I have and I can reach a live person any time I desire. Although I never really want to speak to someone because their web site is wonderful, I can deposit checks through my iPhone, and I've never had any issues. On top of that, I have a credit card with no annual fee that gives me 1-2% cash back. I hear these horror stories about banks but I am so glad that my father and husband served in the military so that I'm eligible to bank with USAA!
Your response to the public vs. private school question missed some things that might help.
- First, find out how good or bad your public school really is. Don't depend on statements from school officials at either your private OR your public school. Get test results, talk with parents, talk with students if they are old enough.
- Check out your public school options. Depending on your location, you may be able to select a charter school, a magnet school, or even a different standard public school that has room.
- Wherever your child is, get involved with the PTA, volunteer opportunities, etc. These can help you detect and prevent potential problems.
- Finally, don't forget to talk with your own child about his or her interests and preferences. I'll never forget visiting a magnet school with my then-7-year-old child and hearing her say excitedly, "Mommy, I want to go to THIS school!"
I was enraged by your response to the woman who called in about the bank promotion to use debit cards as credit cards. Tess Vigeland saying "If you want to save yourself and the merchant money ... use your PIN."
The consumer may wish to save her local merchant money, and can do so by using her PIN, but SHE (the consumer) won't save a dime. It is NOT in her economic interest to select to use her PIN when offered cash-back or other rewards, because other consumers will certainly elect to receive the 2% bonus up to $5. That election by others will drive up prices at the store anyway, and the caller will bear the cost of those credit fees whether she chooses credit or debit.
A correct suggestion would be to request a discount for using your PIN or paying cash. I have encountered a few merchants that offer a discount to customers paying cash (or, less frequently, those using debit). Because those discounts usually dwarf the 2% offered (I've encountered discounts up to 4%!), it would then be in the consumer's interest to forgo the credit card cash-back.
Your suggestion helps the merchant save, but even if the merchant passes that saving on to customers, it may be so diffuse as to make no difference to your caller. In fact, the merchant may pass on the savings through select mark downs on items the caller doesn't even purchase! The only sure way of saving money is for the caller to elect to receive the rewards, or request a discount from the merchant for electing NOT to use the "credit" option.
It's a shame to see a promotion that truly does benefit consumers dismissed as a "scam" by Mr. Lazarus, who NORMALLY provides solid financial advice. Instead of complaining, merchants could offer discounts to consumers paying cash or using a PIN. But your ridiculous "down with banks" bit for passing on profits form fees to consumers is just shameful. It was deceptive to tell the caller that using her PIN would save her money, and you should be absolutely ashamed if even one customer misses a cash-back or rewards opportunity because of your knee-jerk, half-cocked dismissal of a legitimate rewards program as a "scam."
Your comedy show Marketplace Money never ceases to crack me up. Today's conversation about the old Credit vs. Debit discussion was preposterous and hysterical. Your host basically told listeners that getting consumers to select "Credit" when using a debit card was an underhanded plot by evil bankers to steal money from all our noble hometown merchants. How many listeners understood that your populist agenda forms the basis for advising listeners to act against their own economic interest? The fact is an educated consumer should NEVER use their PIN # on a debit card beacuse it ultimately costs the consumer more!
Your answer about the bank promotion to use debit cards was inadequate. You did not really explain the situation very well. You and the caller seemed to understand but I'm unclear.
I suspect it has to do with the two ways (I think) debit cards can be processed - as a debit from the bank or by the credit card company. Aldi stores only accepts debit cards that are not processed thru the credit card system.
Fred
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Fred H. Olson Minneapolis,MN 55411 USA (near north Mpls)
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