Most of the time, these come with zero interest. I’m not sure where the money is for the companies doing these finance options, but if someone did this for a joke, it’s not that big a deal.
$8 McFlurry likely has the financing baked into the price of the product.
You’ll occasionally see businesses (SPEC’s is the local shop that leaps to mind) that will give you a discount for using a debt card rather than a credit card. That’s because the credit card company tends to charge a 2-4% transaction fee on the purchase. SPEC’s can save money by offering to discount their merchandise by some portion of that transaction fee.
The reverse is also true. A retailer that works with Klarda or some other DeFi platform can simply raise the price of all its products to cover the (typically much higher) transaction cost.
This defers the credit risk (if there’s a 12% surcharge, you don’t mind when 10% of the bills go unpaid) in a system that is highly punitive for debtors and tax-favorable to creditors.
German supermarkets tend to read your bank code from your debit card and on your second visit print you a direct debit mandate form with the receipt printer, because that’s cheaper than anything else, although a higher risk.
A lot of our financial fuckery is due to the fact that we have so many financially illiterate people, that companies can impose bullshit like this and get away with it. So in the end we all suffer because we can’t put financial pressure against said companies since they can wait us out, surviving on the stupid.
This applies to a lot of stuff, from streaming to the to fast food to groceries.
What’s even more absurd is that there are people willing to finance that
Most of the time, these come with zero interest. I’m not sure where the money is for the companies doing these finance options, but if someone did this for a joke, it’s not that big a deal.
$8 McFlurry likely has the financing baked into the price of the product.
You’ll occasionally see businesses (SPEC’s is the local shop that leaps to mind) that will give you a discount for using a debt card rather than a credit card. That’s because the credit card company tends to charge a 2-4% transaction fee on the purchase. SPEC’s can save money by offering to discount their merchandise by some portion of that transaction fee.
The reverse is also true. A retailer that works with Klarda or some other DeFi platform can simply raise the price of all its products to cover the (typically much higher) transaction cost.
This defers the credit risk (if there’s a 12% surcharge, you don’t mind when 10% of the bills go unpaid) in a system that is highly punitive for debtors and tax-favorable to creditors.
German supermarkets tend to read your bank code from your debit card and on your second visit print you a direct debit mandate form with the receipt printer, because that’s cheaper than anything else, although a higher risk.
I agree but let’s be real the he real absurdity here is that the ice cream machine wasn’t kneecapped by it’s own manufacturer …
A lot of our financial fuckery is due to the fact that we have so many financially illiterate people, that companies can impose bullshit like this and get away with it. So in the end we all suffer because we can’t put financial pressure against said companies since they can wait us out, surviving on the stupid.
This applies to a lot of stuff, from streaming to the to fast food to groceries.
Basic financial education is a tough one.