Why Do Local Credit/debit Cards Give Huge Discount

[pistachio]

Hi people
Local cards can save people 20% on grocery bills in supermarkets,for example Coto.
Out of curiousity, compare to 0.5-2% cash backs in North America, what is the difference.

 

[Dada]

My experience is quite the opposite. They give you a big discount if you pay cash. But, true, I never shop for groceries in big supermarkets.

 

[scotttswan]

because there's no competition between supermarkets and they can give huge discounts and still make money.

They probably also get large kickbacks from the various banks they are promoting.

 

[r2d2]

Consumers buying more on credit then they should is a good business for the banks. Often those discount offers are combined with 3-12 installments. So I would not be surprised if many consumers eventually lose control, accumulate a large debt, and end up paying a lot more in interest and fees.

 

[estebandepraga]

They give discounts because the prices are already way over priced and then they work with their fllow money-sucking pals in the banks!

 

[RodalfoWalsh]

Hi people
Local cards can save people 20% on grocery bills in supermarkets,for example Coto.
Out of curiousity, compare to 0.5-2% cash backs in North America, what is the difference.

you can also get 20% off with your newspaper subscription, or by being part of their benefit program.

Basically if you're paying full price you're getting screwed.

 

[estebandepraga]

Even with the discounts, your'e getting screwed!

 

[ElQueso]

What everyone said above.

Argentina is a strange place to live when it comes to finances. You may not realize, for example, that those same cards that are offering deals at stores all throughout the city (I'm assuming in other cities/provinces as well) interest-free monthly payments for up to a year (depends on product, store, etc). As I understand it, it is a requirement by law that the banks offer this. No one would be crazy enough to offer interest-free payments in a climate of such high inflation unless they were forced to. But you can leverage such things to make a really good deal for yourself if you buy, for example, appliances on 12 payments and watch as the price of the item increases 30% over the year while you're paying the value of the loan you started with! Quite unlike the new car business (check out the other thread posted today by Gringoboy)

Argentina is very business-challenged for various reasons. It's almost laughable except for those of us who live here full time and have to deal with such things on an on-going basis

 

[RodalfoWalsh]

What everyone said above.

Argentina is a strange place to live when it comes to finances. You may not realize, for example, that those same cards that are offering deals at stores all throughout the city (I'm assuming in other cities/provinces as well) interest-free monthly payments for up to a year (depends on product, store, etc). As I understand it, it is a requirement by law that the banks offer this. No one would be crazy enough to offer interest-free payments in a climate of such high inflation unless they were forced to. But you can leverage such things to make a really good deal for yourself if you buy, for example, appliances on 12 payments and watch as the price of the item increases 30% over the year while you're paying the value of the loan you started with! Quite unlike the new car business (check out the other thread posted today by Gringoboy)

I think you're confusing the ahora12 plan (which is not obligatory) with promotional financing. The 12 months sin interest is no different than the 20% off vis a vis bank motivation. There is no insanity required. The banks cut a deal with the stores on prices to cover part of the cost and then send the rest to marketing expenses.

 

[Rich One]

Coto 15% discount Tuesdays and Thursdays for Community Card members. 10 % discount every day for jubilados..! you fill a form with whatever info you want Discounts for Debit cards..!