your credit card limit deducted 2.8k cause bank help you pay 2.8k to retail
so naturally you are owing bank 2.8k, hence the limit deduction

but you still paying the agreed installment amount every month, the limit will be released accordingly

i think you guys mean statement balance

What he means is that the 3799 is already priced in the interest cost.

For example, I dunno what the term, but say the retail willing to pocket RM3600 for the sales, so just mark up the price till 3799 that 199 goes to bank, 3600 goes to retail

The price is masked that yes, for consumer like us, the end price is what matters. But he is explaining the possible reason of Zero Installment plan items tend to be more expensive than the items without this offered

So if you cash buy an item with zero installment plan option, you may be letting the retail pocket the 199 for no reason, hence it is wise to at least sought for discount

This post has been edited by viktorherald: Oct 2 2023, 01:57 PM

Actually i didnt use apple as an example, just the numbers only

Apple can get away with it because Apple is the only one that sells iOS phones, thus have a monopoly on iOS market and have stronger negotiation power.
You dont like the high price? oh yea boo hoo go buy your android yeah

whereas like for the normal electrical shops, you have more leverage on this as there are vast amount of brands

and also, i also didnt claim that asking for discount always work if the item doesnt have zero-interest installment plan, but hey, why not try it?


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the point is, bank doesnt give 0% installment for free, the cost is surely charged to retail, then its passed on to consumers

This post has been edited by viktorherald: Oct 2 2023, 02:56 PM

thats essentially the point here. Very kesian for cash users, when retails open up the market for CC users, and BNM regulate you cant discriminate against cash buyer and CC buyer with different price

It push to the scenario that cash buying a product is more and more disadvantaged, with a proceeding from the cash sales being paid to CC rewards

So, might as well go sign a CC and reap the benefits while at it

https://www.fool.com/the-ascent/research/av...0the%20business.

Another example, lets say CC charges 2% on retail, for a RM8k Iphone, it is already RM160

what makes you think that Apple would be so kind to completely disregard this charges when making the decision to price their iphones?

It is similar to why Grab Food prices are so exorbant compared to in store menu prices? It is because Grab platform charges an amount say 20% fees. No restaurant in the right will will self absorb the drop in 20% in Revenue, hence the cost is passed to grab users

This post has been edited by viktorherald: Oct 2 2023, 03:06 PM

1. so apple increase the price to cover certain people, so even people pay with cash or debit card also need to pay more.

Yes. Credit Card processing fees charged to Merchant are Operating cost as well.
Some merchant are maybe kind to absorb, but not a guarantee that all merchant will.

2. Are u saying, all of this has mark up retail prices? So people who dont have credit card suffer because they need to pay more to cover people who can buy with 0% installment. Top kek.

Yes, same line of thinking with above point

3. Btw the CC charges u talking about is the charges that need to pay by the shop if they want to accept CC payment for at their shop. Its nothing to do with Apple dumbass.

Yeah, that shop, the Sdn Bhd running the retail, whatever, its an example.

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Have you met some restaurant that die die say Cash / E-wallet only? (Notorious one is The Gardens Fong Lye)? This may be one of the reason that the restaurant dont want to deal with this charges.

This post has been edited by viktorherald: Oct 2 2023, 03:27 PM

https://www.investopedia.com/terms/m/mercha...scount-rate.asp

Then it further reinforces that cash / debit card / E-wallet transaction (not all, grab might charge platform fees as grab provide reward point) is in a disadvantage compared to CC transaction, where the user can earn CC rewards while cash / debit card user gets nothing extra

hmm, i guess this make sense also, like bank pays retail 2.7k, then CC user pay back 2.8k, profit 100
yeah not too familiar with the exact mechanics behind, but concept wise is same.

yeah, that's why i say going retail with cash / E wallet is normally at a disadvantage as the person is helping to pay other CC user rewards point and perks.
given that the disadvantage is negligible, but why not get a waived annual fees CC and whack it also?

Why I got a feeling is N** W** 😂

This post has been edited by viktorherald: Oct 2 2023, 05:25 PM

Installment using your credit card right? Then it still apply, bank will charge insurance agency.

Hmm, the point is not everything is clear cut that if a thing has zero installment plan, then there is surely another cheaper variant of it. Its more to as long the business is offering zero installment plan, then the fees will be part of its operation cost. Then it's up the business to absorb the cost or to pass the cost to consumers

I'm not sure the industry norm for insurance

It's just that the zero installment plan might not be as free as we thought, the fees may be already priced into the nett price of the product. That's why 0% installment can be offered.

Bank have to make money somewhere, won't so good giving people 0% loan for 12 months. Hence the bank will charge merchant. Then it is up to the merchant to decide what to do with the additional coating

That is all