Time to pull out the checkbook

I missed this story when it ran in the Oregonian; I read it this morning when the writer, Brent Hunsperger, quoted from a comment posted by a business owner saying she paid as much in credit card swipe fees as she did in health care costs for 160 employees.

That’s a statement to get your attention.

Unless you totally ignored the the health care debate, you know that rising costs have done as much as anything, apart from the vile behavior of the banks, to undermine the economy. One of the reasons the Obama health care plan, inadequate as it is, was so important is that it was the first step — ever — to change the destructive force of health care costs (and remember: it’s not the care that is so costly but the insurance, and having the latter is no guarantee you’ll receive the former). We still need a public option (hell, we need single payer) among other reforms not accomplished, but at least we’ve set the precedent: our government will act to bring down health care costs.

So if a business finds the costs of using credit and debit cards to be as high as health care, responsible citizens need to stop and take account. Especially health care activists. There are two reasons to right for health care reform: the destructive effect on the economy and the injustice of money being a barrier to what should be a basic human right.

The credit card fee issue is no different. According a study by the Fed, as quoted in Hunsperger’s article (and not everything the Fed does is an evil designed to give more power to banks), “rewards” cards are paid for by increased costs in products, and those costs are paid for by low-income consumers who get pay the increased costs yet do not receive any rewards or other benefits. What good does it do to rack up frequent flyer miles if you can’t afford to use them? There’s no such thing as free. The rewards are like the old Christmas Club accounts: the bank convinces you to open an account, they get your money and you get an interest rate below the normal savings account level.

Sucker.

Why anyone would take these offers at face value is beyond me. Reward cards are sold by banks to make money. If you think you are “earning” something for your card, you’re not. You’re agreeing to paying more for the products you purchase. You’re agreeing to having merchants shelling out huge amounts of their gross receipts, and sending it to out-of-state banks, so that you can save the extra one or two minutes it would take to write a check. But the facts show one thing very clearly: the time you save isn’t worth it. It’s just another concession to the power of the banks.

Recently, thousands of Americans joined in the campaign to quit their banks and join a credit union or community bank. The goal is a good one: take away the only thing that matters to the big banks: money. If you are one of those who realized joining a credit union makes sense — and it does; I belong to Unitus and under circumstances where a big bank would have jacked me tons of money, they have given me assistance and let me keep my own money — it’s time to take the next step: save the cards for real emergencies, not for making it easier to buy that latté or your groceries. Carry cash and a credit card, spend an extra minute, and fight back.

You hate the banks? Then put your money where your mouth is. Put away the cards. Or is convenience more important to you than gaining liberty from the banking cabal?