[net.invest] VISA and Mercantile Trust

clayton@mary.DEC (Cluster Verification, 261-3917, NIO/B2) (01/27/86)

<...........>

	I received several requests for the address of Mercantile Trust,
however, because of a disk failure I lost return addresses, so I am posting
this rather than mailing...

	I have read the fine print and what it boils down to is this:

	They do have a finance charge, and it is based on your "average daily
balance" for the month, so in a sense you could call it interest on your
purchases from time of use, except it isn't considered interest (no tax
benefit).  The amount of the charge is 1.65% (19.8 annual) for balance under
$1,000 or .833% (10 annual) for a balance over $1,000 NOT TO EXCEED 1.50 per
month.  So there is a ceiling of $18.00 per year.  Since I use my card for
emergency or large purchases only I have never paid that much (most months I
never even use the card which means no finance charge to compute with the
average daily balance being $0.00).

	Soooooo, depending on how you use your card, this may be a good deal
for you, it may not.  Of course a maximum of $18.00/year doesn't seem too bad
(compared to some I've seen) if you use the card a lot.

	They do, also, give the discount dollars credit for use towards 
purchase from VISAs catalog (Very uninteresting to me).

	Address:

	Mercantile Trust Company
	PO Box 306
	St. Louis, MO  63166


Elizabeth
....decwrl!dec-rhea!dec-vicki!clayton	

hlb@loral.UUCP (01/28/86)

In article <730@decwrl.DEC.COM>, clayton@mary.DEC (Cluster Verification, 261-3917, NIO/B2) writes:
> 
> 
> 	They do have a finance charge, and it is based on your "average daily
> balance" for the month, so in a sense you could call it interest on your
> purchases from time of use, except it isn't considered interest (no tax
> benefit).  The amount of the charge is 1.65% (19.8 annual) for balance under
> $1,000 or .833% (10 annual) for a balance over $1,000 NOT TO EXCEED 1.50 per
> month.  So there is a ceiling of $18.00 per year.  Since I use my card for
> 
> 	Mercantile Trust Company
> 	PO Box 306
> 	St. Louis, MO  63166
> 
> Elizabeth
> ....decwrl!dec-rhea!dec-vicki!clayton	

NOT TO EXCEED 1.5 should read 1.5% thus it would not have an $18.00/yr
cap.  The $18.00/yr cap would imply $1.50 x 12 months.

clayton@vicki.DEC (Cluster Verification, 261-3917, NIO/B2) (01/31/86)

>> 
>> 	They do have a finance charge, and it is based on your "average daily
>> balance" for the month, so in a sense you could call it interest on your
>> purchases from time of use, except it isn't considered interest (no tax
>> benefit).  The amount of the charge is 1.65% (19.8 annual) for balance under
>> $1,000 or .833% (10 annual) for a balance over $1,000 NOT TO EXCEED 1.50 per
>> month.  So there is a ceiling of $18.00 per year.  Since I use my card for
>> 
>> 	Mercantile Trust Company
>> 	PO Box 306
>> 	St. Louis, MO  63166
>> 
>> Elizabeth
>> ....decwrl!dec-rhea!dec-vicki!clayton	
> 
>NOT TO EXCEED 1.5 should read 1.5% thus it would not have an $18.00/yr
>cap.  The $18.00/yr cap would imply $1.50 x 12 months.
>
No, it is $1.50/month cap, or $18.00/yr ceiling.  The interest rates are as 
specified (1.65% and .833%), they do not fluctuate (of course, Mercantile 
reserves the right to change them, but they haven't yet).  I will repeat
as it has been cut out - depending on how you use your card this may or
may not be a good deal for you (it is for me).

Elizabeth