Platinum Cards, What'S The Difference?

[Crossy]

I have assorted cards from different banks and providers (Visa and Mastercard). These range from regular, gold and platinum. None has any significant debt and I spread spending between them, mostly hotel bills and flights.

So, we're in HomePro yesterday buying a new TV. Wifey negotiated a small discount and the ubiquitous freebie (electric griddle).

First card out of the wallet was my MBNA Platinum Visa, "ah, if you pay with that you pay full price and no freebie", ok, try Barclaycard regular Visa, "no problem sir" The chap did actually say the problem was that the card is a Platinum but was unable to explain just why there was an issue. Both are foreign cards so that's not the problem.

I've never had this problem before, so just what is the difference as far as the retailer is concerned?

[JimGant]

Google on "interchange rates." These are what the merchant (via his servicing bank) pays to accept plastic. He pays more for the fancier cards -- to offset what the issuing banks have to pay out for things such as cash back offers.

Anyway, in the US, merchants aren't allowed to discriminate amongst different cards -- even if some cost them more than others. But, in other countries, the requirements differ.

Not sure about Thailand. But, I've always thought the merchant had every right to charge more for plastic transactions (to cover his cost for accepting plastic). And, if some cards are just plain non-profit makers, to just be able to refuse accepting them.

We just bought a new washing machine at Home Pro. Got a very nice discount for using cash, and not plastic.

Interestingly, giving a discount for cash vs plastic is ok by US law. It's only when you charge *more* for a plastic transaction that you come into noncompliance. Pretty nonsensical, IMO. Violates the theory of relativity.

[PattayaParent]

^well it makes sense as the retailer has to pay 3% to the CC company (7% Amex or Diners) to 'guarantee' the payment whereas with cash he already has a guarantee so giving a discount to make a sale makes sense.

In some countries it is legal for retailers to add the CC charge to the bill, I think UK has just changed the laws to allow this for example.

Don't know what the law says in Thailand but travel agents have asked me for 3% more for paying with CC.

[colinthailand20005]

Google on "interchange rates." These are what the merchant (via his servicing bank) pays to accept plastic. He pays more for the fancier cards -- to offset what the issuing banks have to pay out for things such as cash back offers.

Anyway, in the US, merchants aren't allowed to discriminate amongst different cards -- even if some cost them more than others. But, in other countries, the requirements differ.

Not sure about Thailand. But, I've always thought the merchant had every right to charge more for plastic transactions (to cover his cost for accepting plastic). And, if some cards are just plain non-profit makers, to just be able to refuse accepting them.

We just bought a new washing machine at Home Pro. Got a very nice discount for using cash, and not plastic.

Interestingly, giving a discount for cash vs plastic is ok by US law. It's only when you charge *more* for a plastic transaction that you come into noncompliance. Pretty nonsensical, IMO. Violates the theory of relativity.

When I worked for a company in Australia & UK, I re-negoiated there rates for their terminal, and the Platinum card rates only applied to onshore cards not foreign cards, foreign cards had their own rate and it didn't matter what card it was, although visa & mastercard had different rates.

I think this sales assistant in Thailand was ignorant to the fact that all foreign cards are charged the same. And only Thai card will make a difference.