What cards/sites to use to buy diamonds online?

[D_]

Hello,

I've bought jewelry with wire transfer because the wire price is lower by ~3% usually.
What cards/rebate websites have you used that allows you to purchase diamonds at better price overall?

Not sure if this has been discussed before.
I tried searching for the threads but can't find them.
Maybe I'm doing this incorrectly?

Also, I'm looking for one card specifically. It used to (or perhaps still is) offer ~3.5-5% discount/rebate.
I read it on an article before (about buying engagement rings online and how it's a smart move, story of a couple who didn't want to purchase a ring at first but ended up buying online, he used some card that offers additional savings for his purchase etc).
It is a card that was probably aimed mainly for university students/recent graduates (to pay their tuition etc.)
But they also say "hey, you can use this to buy engagement rings etc."
We need to be a member first to get that card.
I didn't jot down the name, now I can't find it after spending quite a while searching it's driving me mental
Does this ring a bell to anyone?

 

[telephone89]

I'm not totally sure what you mean, but I have a credit card that is 2% cash back on purchases (at the end of the year you get a credit). You can also use a site like ebates, which gets a 'cut' for 'directing' you to the website you purchase from, I think the % ranges depending on what the site offers.

 

[PintoBean]

I use Discover and i believe it's 1% on purchases, more on special promotions for the month?

BUT the way I really get the cash back rewards to work for me is to exchange the $$ for gift cards of a higher value, e.g., $45 cash back for $50 gift card. And I don't use cards that require a membership fee.

 

[PintoBean]

But even if you are using a credit card, I do advise having the equivalent cash amount saved because no amount of rewards will outweigh the interest you'd have to shell out for.

 

[D_]

Ah, gift card. That's a good idea for other purchases, Pinto.

So it looks like wire price is still usually the most economical way to purchase then?
And yes, definitely not raking up interest on this kind of purchase.
Just wondering what's the best way to pay.

 

[Rockdiamond]

HI D,
Many ( most) websites offer a discount for bank wire payment- so check what that is and compare how many points, or cashback offers you have to see which saves the most.

About interest on this type of purchase.
I have been approaced by a few companies offering to put financing links on our site.
Most offer such high interest rates, I won't allow them to link- unless you've got perfect credit, they are charging over 25% apr.
But today, there's a new low- leasing jewelry.
If someone wanted a ring which was offered for $4k, they could lease it for 18 months- they'd own it at the end. Total cost of the ring under this plan was close to $9k
Buyer beware....
Rant over

 

[denverappraiser]

HI D,
Many ( most) websites offer a discount for bank wire payment- so check what that is and compare how many points, or cashback offers you have to see which saves the most.

About interest on this type of purchase.
I have been approaced by a few companies offering to put financing links on our site.
Most offer such high interest rates, I won't allow them to link- unless you've got perfect credit, they are charging over 25% apr.
But today, there's a new low- leasing jewelry.
If someone wanted a ring which was offered for $4k, they could lease it for 18 months- they'd own it at the end. Total cost of the ring under this plan was close to $9k
Buyer beware....
Rant over

Rent to own engagement rings?

 

[frugalfw]

HI D,
Many ( most) websites offer a discount for bank wire payment- so check what that is and compare how many points, or cashback offers you have to see which saves the most.

About interest on this type of purchase.
I have been approaced by a few companies offering to put financing links on our site.
Most offer such high interest rates, I won't allow them to link- unless you've got perfect credit, they are charging over 25% apr.
But today, there's a new low- leasing jewelry.
If someone wanted a ring which was offered for $4k, they could lease it for 18 months- they'd own it at the end. Total cost of the ring under this plan was close to $9k
Buyer beware....
Rant over

Buyer beware indeed...that is terrible!

Are there retailers actually offering this so-called "service?"

 

[Rockdiamond]

HI D,
Many ( most) websites offer a discount for bank wire payment- so check what that is and compare how many points, or cashback offers you have to see which saves the most.

About interest on this type of purchase.
I have been approaced by a few companies offering to put financing links on our site.
Most offer such high interest rates, I won't allow them to link- unless you've got perfect credit, they are charging over 25% apr.
But today, there's a new low- leasing jewelry.
If someone wanted a ring which was offered for $4k, they could lease it for 18 months- they'd own it at the end. Total cost of the ring under this plan was close to $9k
Buyer beware....
Rant over

Buyer beware indeed...that is terrible!

Are there retailers actually offering this so-called "service?"

I can tell you that the company offering this service aggressively persued us- so it's likely other retailers have been approached. Unfortunately today's new business model includes a total lack of concience on the part of many sellers. So likely there are already jewelry retailers offering this type of rip off plan.

If the buyer of the $4000 ring paid it off in only 120 days it would "only' cost about $6k. Sickening really.

 

[WinkHPD]

Hello,

I've bought jewelry with wire transfer because the wire price is lower by ~3% usually.
What cards/rebate websites have you used that allows you to purchase diamonds at better price overall?

Not sure if this has been discussed before.
I tried searching for the threads but can't find them.
Maybe I'm doing this incorrectly?

Also, I'm looking for one card specifically. It used to (or perhaps still is) offer ~3.5-5% discount/rebate.
I read it on an article before (about buying engagement rings online and how it's a smart move, story of a couple who didn't want to purchase a ring at first but ended up buying online, he used some card that offers additional savings for his purchase etc).
It is a card that was probably aimed mainly for university students/recent graduates (to pay their tuition etc.)
But they also say "hey, you can use this to buy engagement rings etc."
We need to be a member first to get that card.
I didn't jot down the name, now I can't find it after spending quite a while searching it's driving me mental
Does this ring a bell to anyone?

There are a couple of reasons that most of us offer wire transfer discounts.

#1. No risk of fraud. Once that money is in my account, it is MINE. I can withdraw it, I can send it back if you return the diamond, or I can let it sit there, but YOU can not take it back.

2. Credit cards have an interbank exchange rate that all cards charge. Add to that rate the 1% 2% 3.5% cash back and all of a sudden we are paying the credit card a significant part of our profits for your convenience. In a normal retail store, that is one thing, but in the diamond world where margins are paper thin, it can be a killer. Of course there are mileage cards and donate to your favorite charity cards, so we never know what we are going to be charged for using a particular card until the monthly bill is arrived.

From a merchants point of view, some cards are okay, and others are thieves, offering you the consumer ever more of OUR money to entice you into using their card while hoping that you will end up paying them their exorbitant interest fees so that they can make money on both sides of the transaction.

That is why we offer wire transfer discounts.

Wink

 

[D_]

So is it safe to assume for vendors who offer wire discount, that'll be their preferred method of payment too?

I'm just curious about what other people have been using to finance their purchase.
And I felt if I get 3% off from wire price, but can get, say, 5%, by stacking credit card rewards/promotion from other affiliate websites etc. then I'd be leaving some money on the table/not a savvy enough shopper (for diamonds that cost thousands if not tens of thousands of $$, those amounts add up).
Because we are just using one/some of the already available and legitimate methods of payment (how do we know which ones are thieves, and that's not how we see it from our side of the table).

Thanks for offering the perspective from the other side of the table, Wink.

 

[WinkHPD]

So is it safe to assume for vendors who offer wire discount, that'll be their preferred method of payment too?

I'm just curious about what other people have been using to finance their purchase.
And I felt if I get 3% off from wire price, but can get, say, 5%, by stacking credit card rewards/promotion from other affiliate websites etc. then I'd be leaving some money on the table/not a savvy enough shopper (for diamonds that cost thousands if not tens of thousands of $$, those amounts add up).
Because we are just using one/some of the already available and legitimate methods of payment (how do we know which ones are thieves, and that's not how we see it from our side of the table).

Thanks for offering the perspective from the other side of the table, Wink.

You are very welcome.

I can not answer for other vendors, but for me it is. I gladly give 5% for the knowledge that I am never going to have to sell a large number of diamonds to replace the money lost when I get burned for one diamond at paper thin margins. And I have to sweat the card for up to a year, knowing that if the client bangs her hand on a file cabinet and looses a diamond I can have the price of the diamond recalled by the credit card company. The cc companies feel that standing almost always with the client over the vendor is good business for them, and they really could care less about the vendors, after all, it is not the credit card company's money that they are playing with, but ours.

You can easily tell which vendors are straight by googling them. One bad transaction and the world will know about it via google, Yelp, Craig's list and other sources, such as Pricescope. Shockingly, if you google the vendors here, you are likely to have a hard time finding even one incidence of malfeasance. A nice thing about Pricescope too is that the vendors can not hold up a refund until you give them a good rating like they can on Ebay. If you see someone here who is trusted, you can be sure they have EARNED that trust.

Wink

 

[D_]

Oh, when I said thieves I was not referring to the vendors at all.
I'm with you re the integrity of the vendors here.
I was using the term you used to describe some of the credit card companies (as in we may not be able to tell which credit card companies incur hefty fees to you).

 

[telephone89]

Can I just say, I actually did not know that the vendor pays that 2% cash back, I assumed it was the credit card company. How incredibly dumb of me to not realize that! I realize that wire price is usually better, and no risk of the interest as you stated. Thanks for replying.

 

[WinkHPD]

Oh, when I said thieves I was not referring to the vendors at all.
I'm with you re the integrity of the vendors here.
I was using the term you used to describe some of the credit card companies (as in we may not be able to tell which credit card companies incur hefty fees to you).

Sorry for misunderstanding you. I am glad it was not any of the vendors here that you were wondering about. All of us here are fierce competitors, yet when we get to the big JCK show in Vegas each year it is very common to find us breaking bread together or hanging out at the Pricescope get together. It is easy to like honorable people, even as we do our best to be the one who makes the sale.

Can I just say, I actually did not know that the vendor pays that 2% cash back, I assumed it was the credit card company. How incredibly dumb of me to not realize that! I realize that wire price is usually better, and no risk of the interest as you stated. Thanks for replying.

You are welcome.

It has been a while since I have checked, but the basic card with no miles or cash back or other "benefits" has/had an interbank rate of somewhere in the neighborhood of 1.75%. To this is added the processor's fee which can be as low as 0.15% (that is 15% of one percent, a really tiny amount.) to as high as what ever the processor can get away with charging. It will normally be in the neighborhood of 0.50% to 0.85% for normal sized accounts dealing with reputable processors. Then all the other charges are added. A per item charge is common, then the cash back, mileage or other card holder benefits are added. Most of us end up paying 2.5 to 6% to take a card, depending on the card and also on whether or not we are swiping the card in a physical location or accepting a card on the internet, which the card companies have decided entitled them to a bit more of our money, as after all, it is riskier. (They still take all of the money out of our account if the transaction is fraudulent, but they like to charge us a little more for the privilege if the transaction is good, because, hey, we signed the contract allowing them to do so.

Oh, and just in case all this has not given the retailer a headache, he gets to take fifteen to twenty calls per week from people in the processing business who want to convince him that they are the cheapest vendor on the block. It is like trying to choose who to buy a diamond from, only there is no Pricescope for cc processors where we can go to find out who really sells quality cc processing and who is selling hype.

Sigh.

Wink

 

[D_]

Found it!

It's Upromise card.
And here's the article:
http://www.nytimes.com/2014/02/01/your-money/with-engagement-rings-love-meets-budget.html?_r=0

Blue Nile is a listed vendor - at 5%.
I don't get how the couple in the story got 10% cashback though. Maybe there was a special promotion at that time?

I was wondering about something though.
Do vendors have a choice whether to partner with certain cards or not?
Let's take the Upromise card.
If Blue Nile choose to be a participating retailer, then I assume Blue Nile will have a say of how much %% it wants to offer to UPromise card holder.
And then it's just a business decision.
If Blue Nile thinks that the revenues it derives from getting businesses from UPromise card holders exceed the discounts it gives then total net profit will go up and it will justify continuing the partnership.
If it's the contrary then Blue Nile can just choose to no longer participate, no?