[geeks] [rant] New rebate "checks"

[gsm at mendelson.com]

On Tue, Apr 14, 2009 at 11:43:12AM -0400, Lionel Peterson wrote:
>I'll admit to being old and cranky, but how are these cards cheaper
>for the Mfg? I guess if folks don't fully draw them down, they get to
>keep the random change at some point, but these can't be cheaper than
>paper checks, can they?

Because they cost them nothing. The bank which issues them takes a fee
when you use them, which covers their cost and profit. Instead of buying
a check, printing it out, mailing it and then paying a per check fee to
the bank, they give you the debit card.

BTW, do they have your name on them, or are they generic cards? If they are
generic cards, it makes it a lot cheaper to process, they just stick a label
on an already stuffed and sealed envelope.

They also are betting that less people actually cash the cards in than a
check. 

Geoff.

-- 
Geoffrey S. Mendelson, Jerusalem, Israel gsm at mendelson.com  N3OWJ/4X1GM