Quote:
Originally Posted by justjim
So some (not all) of the merchants charge 2% if you use a credit card. But the credit card company pays me back 2% (sometimes more) for using it. It’s a wash…. In addition, I get to “float” my cash for several days a month too. Wait, not so fast, I’m still going to use my credit card and pay it off each month.
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some maybe, but what happens is that the credit card company increases merchant fees to use the card to be able to increase (give better rewards) to card holders. . but the cardholders aren't getting all that much of the increase if VISA/Mastercard etc the companies are growing at an oligopolistic rate, not at a commodity rate. .
in a supermarket, the fee is spread over a large quantity of products. .
at a gas station, the fee is 99% direct with 1 product
so whether you pay in cash or credit at most companies which don't offer a discount, like a gas station, you are paying for the merchant fee in the current price. .
I went to pay at Chipotle yesterday, and the chip card reader didn't work, the tap didn't work, the cashier then grabbed my card and tried to swipe it. I blocked that to prevent the skimmer from working. . then the cashier said that i had to use exact change because she has no change. .
i gave $14.00 for a $13.80 tab and told her my card worked all day elsewhere. . . . and left,. . they are still trying to get your information. .