Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

Everyone knows the stores, the clerks ask,cashiers ask... they ALL try to say sign you up and tell you.. hey you can SAVE 10 % on this purchase. My question is WHY does a company base everyday operations on getting customers to sign up.We are told at meetings that our percentages everyday are based on how many we can get... contests are even held.. points are given( I even seen cashiers fight over who gets the signup) and all other stores are compared... at the last meeting we were told BY THE STORE MANAGER the week sucked so bad that maybe we should look for another job??? so guess what I QUIT!! Please can anyone explain why companies are doing this?.... the credit card debt is soooo bad in Canada right now and I just dont agree with this policy am I wrong???

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

There are two reasons why retailers do it, (1) to make money on financing, and (2) to collect data to study customers%26#039; purchasing patterns. When you have a customer with a store card, you can safely assume that all (or almost all) purchases he/she makes at the store will be made with this card. You now get a full view of the person%26#039;s history with you. Otherwise, you have no way of figuring out that a John Smith who just paid cash is the same John Smith who paid with American Express last month and with Visa debit card last year. This is valuable information, and retailers want it and are ready to pay to get it.

Are you wrong to disagree with your employer%26#039;s policy? No. If you feel you are morally obligated not to participate, congratulations; you have priciples. You should remember, however, that principles can sometimes be expensive to maintain.

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

Because they charge an outrageous APR on the cards (~19%), which turns out to be a great way to increase their profits.

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

I think you are right. It all comes down to money. These stores and the banks they work with make a tremendous amount of money on interest. You buy something for $100, but take 3 years to pay it off. They walk away with close to another $100 from you, and they don%26#039;t have to work that hard to get it.

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

They want a chunk of that intrest!

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

its all scam, initiated by the credit card companies, they wanna own your butt for the rest of your life, get in debt, allowing purchases when they know the credit is not available, its there way of stalking you for the rest of your life. they make it easy for you to get, but you can never escape them

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

Signing people up for credit cards is a profit center for the stores. For each dollar carried as debt for card holders, the stores take credit for that as a receiveable. This reflects on the financials at the end of each month.

Cards are also an excellent method for stores to gain loyalty from customers. Credit-impaired buyers are more likely to buy from a store willing to give them credit than from stores that will not.

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

Statistics show that when A CONSUMER USES A PRIVATE COMPANY CARD-THEY SPEND UP TO 33 PERCENT MORE.

Tell me why big box retail and chain stores work so hard at signing you up for their credit card???

There are actually several different reasons a company will push to sign up a customer on their proprietary credit cards.

1) Loyalty, particularly for gasoline and airline credit cards. Customers are significantly more likely to return to the site over and over, thus increasing the number of transactions and building a loyal customer.

2) Credit card fees to the merchant are typically less (or zero) for proprietary cards - in the gasoline, c-store business, approximately 1 - 3 % of total revenue is eaten up by credit card charges. With gas prices at an all time high, this can significantly minimize the margin for the site.

3) The typical transaction size for a credit card customer is higher than for a cash customer - higher rings per customer.

4) To get a share of the interest paid by the customers.