Saturday, December 22, 2007

Free Money!

Check this out, you buy an American Express Gift Card from Vons (almost as good as cash ) then you get $5 off your next grocery shopping. Basically free money!
PayPal, not known for being the cheapest credit card processor, only charges 2.9% plus 30 cents so American Express is only making about $1.75 on the gift card. Vons is probably taking the $5 hit since they are hoping you'll use your $5 off on a bigger purchase with a greater than $5 profit. Maybe American Express is doing it to promote their cards since American Express isn't taking as often and Visa and Mastercard. I am not sure who is getting ripped off here, but it sure isn't the consumer.

-Jesse

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