Quote:
Originally Posted by rjm1cc
It cost the merchant money to process the cc. Thus if no fee is charged this cost is spread over all customers. If the charge can be limited to just the customer causing the expense then the non cc customers should get a lower price in theory. In short if you pay a dollar on a cc the merchant might only get 95 to 97 cents but if you use a dollar bill they get 100 cents.
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That is technically accurate. But, if merchants stopped accepting credit cards, they would lose a lot of business. When McDonald's started accepting credit cards, they noticed a 50 percent increase in their average transaction amount. It is human nature for people to spend more money when they use a credit card than when they pay cash. I think that McDonald's doesn't charge a credit card surcharge for a good reason.