Quote:
Originally Posted by NotFromAroundHere
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.
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I agree. And, I think that the merchant's banking cost to accept credit cards greatly increases their gross income and profit. They would lose a lot of business if they required customers to pay cash. For example, McDonald's found that their average tranaction amount increased substantially when they installed credit card swipe machines at the counter. Another benefit to credit cards is the reduction in crime, both in store robberies and street muggings, because a lot of people don't carry any cash. I believe that the trend is to reduce cash transactions, and I don't think it will change because of banking transaction fees.