Path: utzoo!attcan!uunet!cs.utexas.edu!tut.cis.ohio-state.edu!ukma!gatech!udel!rochester!pt.cs.cmu.edu!andrew.cmu.edu!ej0s+
From: ej0s+@andrew.cmu.edu (Eric Jenkins)
Newsgroups: comp.sys.amiga
Subject: Re: The Mail Order Amiga
Message-ID: <MYXg=3y00VA6E4WFIr@andrew.cmu.edu>
Date: 8 Jun 89 19:02:27 GMT
References: <767@corpane.UUCP>
Organization: Psychology, Carnegie Mellon, Pittsburgh, PA
Lines: 25
In-Reply-To: <767@corpane.UUCP>

John Sparks writes:
>6. Is there and additional charge for use of credit cards? (This is the
one
>   that I hate the most. Companies WANT and NEED your business. To get 
>   it they offer the consumer a more convenient way of purchasing. Why 
>   should you pay a penalty to use this form of payment???)

The reason companies have an additional charge  for use of a credit card
is because credit card companies charge the companies for use of
a credit card; usually between 3%-5% of the purchase price.  That means
that if you could purchase an Amiga 2500 from Go Amigo for $3399 with
your Visa credit card, Go Amigo would submit a charge order of $3399 
to Visa, Visa would debit your account by $3399 and Visa would send 
Go Amigo only $3297.03 cash.  To make up for this $101.97 difference 
between the purchase price and the amount of money actually collected 
by Go Amigo when you use your credit card, Go Amigo charges you the 
difference.

What Go Amigo could do instead is advertise $3500.97and not charge 
extra for the Visa, but then those people who want to pay cash would
have to pay the extra $101.97.  So, it seems to me that the way it is
done now is the best policy since purchasers are given a choice of
low price or ease of payment (assuming that choices are good things).

--Eric Jenkins