Consumer protection bodies must correct distortions in card miles

messi23

The article Points and miles on credit cards are paid for by the poorest was published in this prestigious Consultor Jurídica magazine on September thi. The importance of the topic involving popular economics plus the repercussion and especially some interesting criticisms call for a return to the subject with attempts at explanations and deepening. This is what we intend to do with this new article with the same name but with sequence number. In summary the previous article supports and concludes: that the poorest are left out of the kind credit card points and miles scheme. That the fees charged by credit card companies are embedded in all prices in the economy.

That consequently the poorest who do not have a Germany Phone Number credit card end up partially subsidizing the points and miles of the richest. That the government has already recognized the transfer of income from the poorest to the richest as a result of the credit card fee embedded in prices; that the recent Provisional Measure which authorizes discounts on cash purchases is insufficient to solve the problem; and finally that the State should impose a clear distinction determining that the sales price be charged for effective payment in cash adding the respective fees in case of purchase by credit card. The first important point raised would be unconstitutionality for harming free enterprise free competition and State intervention in the economy to dictate prices.



The second point to be deepened is the growing volume of unnecessary creditfinancing driven by the points system causing a large part of the economy commerce and services to pay fees to intermediary companies. The determination that the sales price be that charged for payment in cash with an increase in the respective fee in the case of a credit card does not characterize any interference in free enterprise free competition and even less undue intervention by the State in the economy to dictate prices . The spot price is decided by economic agents without any State intervention. Each supplier would continue to set the price for their product or service.