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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Have you ever wondered why you see more companies going to Credit/Debit Card only payments. Turns out that it is more cost effective in the big picture. The company does not have to worry about keeping cash/change, employee theft, counting and balancing cash throughout the day, etc. Using only charge cards generates immediately your proceeds and almost automatically deposits them into the bank each day. All labor needed to take cash are significant cost and problems for the company but is assumed to be normal. Unfortunately, some companies still live in the past and insist they are losing all the money paid to fees. they need to look at the bigger picture! (including usually an increase in sales!)