Discovery Bank will be disruptive

manicminer said:
You're being naiive. Just saying. Every time you swipe your card the merchant pays minimum 6% premium per transaction. Guess who gets that expense passed on to them? Seriously naiive.
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1) The transaction fee goes to Visa/MasterCard, not your bank.

2) It’s definitely not 6%, it’s:
Visa: 1.43% - 2.4%
Discover: 1.56% - 2.3%
MasterCard: 1.55% - 2.6%
American Express: 2.5% - 3.5%
 
f2wohf said:
1) The transaction fee goes to Visa/MasterCard, not your bank.

2) It’s definitely not 6%, it’s:
Visa: 1.43% - 2.4%
Discover: 1.56% - 2.3%
MasterCard: 1.55% - 2.6%
American Express: 2.5% - 3.5%
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Most of the fees go to the banks, the bulk being interchange paid from the acquiring bank to the issuing bank.

The Schemes get a small processing fee based on their agreement with each bank.
 
BrandonH said:
Most of the fees go to the banks, the bulk being interchange paid from the acquiring bank to the issuing bank.

The Schemes get a small processing fee based on their agreement with each bank.
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Card assoc. fees will only kick in if the acquiring bank does not peer with bank or Bankserv. Ie foreigner in SA or tiny bank issuing Visa card etc.
 
eBucks it a big win for me.

I don't get as much as some people here, but I'm also on R800.00pm.

What else can they offer that FNB can't ?
 
f2wohf said:
1) The transaction fee goes to Visa/MasterCard, not your bank.

2) It’s definitely not 6%, it’s:
Visa: 1.43% - 2.4%
Discover: 1.56% - 2.3%
MasterCard: 1.55% - 2.6%
American Express: 2.5% - 3.5%
Click to expand...
No they dont lol. They get passed on to YOU. Do you think the merchant just gives the 6% away? It's the same with cash handling fees and VAT. YOU pay them when you shop.
 
manicminer said:
No they dont lol. They get passed on to YOU. Do you think the merchant just gives the 6% away? It's the same with cash handling fees and VAT. YOU pay them when you shop.
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The price doesn't change whether you're paying with cash or not. So cash payers will always subsidize card, with its increased transaction cost. The only way you won't pay any card fees, is if nobody uses cards. Which isn't going to happen. So you may as well benefit in the form of ebucks, effectively paying less than those who don't earn ebucks.
While I understand the point you're trying to make, you're reaching a bit in terms of argument.
 
Messugga said:
The price doesn't change whether you're paying with cash or not. So cash payers will always subsidize card, with its increased transaction cost. The only way you won't pay any card fees, is if nobody uses cards. Which isn't going to happen. So you may as well benefit in the form of ebucks, effectively paying less than those who don't earn ebucks.
While I understand the point you're trying to make, you're reaching a bit in terms of argument.
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https://www.quora.com/How-much-do-p...estimate-of-the-percentage-cost-for-USD-1–500

My point is not that you can avoid the fees. My point is that you're being naiive if you think your bank is paying you to use their services. Banks are a business like any other.
 
manicminer said:
My point is not that you can avoid the fees. My point is that you're being naiive if you think your bank is paying you to use their services. Banks are a business like any other.
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I'm fairly sure that for any given eBucks earner, the bank makes more money from having their 10k fixed deposits invested at 7% while loaning the money out on a home-loan at 11%, or other such things. The house always wins.

Still, with some rewards programmes, you can ease the pain of losing a little bit.
 
silkenphoenixx said:
I'm fairly sure that for any given eBucks earner, the bank makes more money from having their 10k fixed deposits invested at 7% while loaning the money out on a home-loan at 11%, or other such things. The house always wins.

Still, with some rewards programmes, you can ease the pain of losing a little bit.
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To put it into perspective, fnb gave me 65% of my bond interest back in ebucks last month...
 
backstreetboy said:
Lol yeah right. Keep blowing your own horn. Capitec is where it's at...
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Messugga said:
The price doesn't change whether you're paying with cash or not. So cash payers will always subsidize card, with its increased transaction cost. The only way you won't pay any card fees, is if nobody uses cards. Which isn't going to happen. So you may as well benefit in the form of ebucks, effectively paying less than those who don't earn ebucks.
While I understand the point you're trying to make, you're reaching a bit in terms of argument.
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And even in that case, the merchants probably wouldn’t lower their cost and just keep the extra margin.
 
Hamster said:
Vitality? If there is anybody that can beat eBucks it is Vitality.
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Remember Feb this year is the 1st Vitality to Miles.. which should be interesting. Sadly they don’t really explain how this happens vs %. That % though is kinda murky as they just have an example so meh..

https://www.discovery.co.za/portal/individual/credit-card-news-oct16-convert-vitality-points

Members of participating medical schemes administered by Discovery Health (Pty) Ltd with Discovery Card (and Discovery Miles activated) on Vitality can get up to 50% of their Vitality points back in Discovery Miles. The percentage of Discovery Miles that you will get depends on your Vitality status, Discovery Card 12-month spend, and your medical scheme claims level.
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So will see.. thinking of pushing more partner retailer purchases on it from next year pending what I see the reward is.
 
not blown away by the benefit, an example:
Jack is a member of Discovery Health medical scheme and he falls into the low claims level. He is also a Vitality member and a Discovery Card holder with Discovery Miles activated. He is currently on Diamond status, with 50 000 points and has an average Discovery Card spend of R20 000 per month over the last 12 months. Jack decides to activate the Points to Miles benefit. Jack’s Vitality status, claims level and Card spend means he gets 40% of his Vitality points in Discovery Miles. He will be awarded 20 000 Discovery Miles (R2 000) in February the following year.
 
Hey, does anyone understand how the points to miles benefit works? I have 94 000 points right now, which means I'll be Gold next year. If I activate the benefit to get some (unknown number of) miles from these points, will I lose the points and therefore not be Gold next year?
 
They've milked us sideways for medical aid costs, so I imagine the bank will follow similar operating principles... I'll stick with my current one for now, I'de rather trust Mr RB Jacobs for now.
 
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