Re: Beat the system?

Posted by BLANCA (168.49.137.43) on August 08, 2002 at 16:17:38:

In Reply to: Beat the system? posted by SA on August 07, 2002 at 15:52:28:

You be the judge this came from my cpa certified public accountant. After a person agrees to the interest rate and payment terms on the credit card application and it is approved and a credit limit is established, a puchaser's charge slip (IOU) becomes a promise to pay (an income stream) that gets deposited by the merchant after a purchase is made. Then the credit card company takes these charge slips bundles them into risk categories using cardholder profiles and other demographic characteristics, sells them as monetized credit securities ( ie., new money is credted), takes these proceeds (new money) to pay the merchants and then bills the purchaser for thise charges--all without the credit card company risking or loaning a cent of their own assets (equity) to the purchaser. In effect, the purchaser is paying for the merchanise twice once to the merchant and then once again to the credit card company--besides paying the credit card company a 9-18% interest fee for extending any credit beyond the interest-free term.
how guest who is beating the system.

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