Quote:
Originally Posted by CoachKandSportsguy
you all realize that charging all purchases on a credit card increases prices on items, because the merchant pays the credit card company a fee as a percentage of the sale, average about 4%. And because a merchant can't reliably predict, except by the logic that the trend is your friend, how many customers will pay by credit card, they have raised their prices about 3-4% to pay the credit card company 4% of the sale. They do this to keep their required minimum margin to remain profitable. And that cash back? You got that because you forced the retailer to raise prices so credit cards are splitting the increase with you. So if everyone actually paid cash, prices would be lower. And if you get 2% back, that means net you forced a raise of 2 %. . . credit card companies are just economic rent seekers for convenience. . . nice job raising prices 4% for everyone. . .
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Many things wrong with this post. The average credit card processing charge is nowhere near 4%. More like 2% is average. .5% or so more for cardless transactions (online, etc.). In return for that, the business doesn't have to deal with/pay for bounced checks and a myriad of bookkeeping/money handling chores that go along with "traditional" payments. I haven't yet "forced" anyone to accept credit cards or raise their prices. They make those decision themselves, in the best interest of their business.