Why Using Your Credit Card Is Getting More Expensive | WSJ 

Yet everyone will claim they're the exception to that.

Depends on the person. If you are disciplined, you end up making money of these credit card companies through their rewards programs.

@@STG44musikmeister This commenter certainly is not..

@@fs5775 Statistically, using a card whether debit or credit increases your likelihood to spend more. I am a staunch anti-credit card person and I tried it to see how I would respond. While I did manage to stick to budget, there were times I spent more than I normally would had I paid cash. I then went to all cash and I did save around $200 per paycheck just from using cash. You tell me what credit card gives me around $400/month in cash to save into whatever I want returning me more gains through the market.

@@GabrielMartinez-sd8pc Yes it can be subtle as grabbing a soda at check out or deciding not to because you don't want to break your $10 among other things.

If about if you use cash , it easier to laundry , and manipulate the account, for both loan and tax purposes .

@@ylfyg It's also easy for an employee to play tricks, like ring up a lower cost order, and pocket the difference of cash.

@@fitybux4664 this is what the POS system and CCTV is for

Here in Brazil were basically switching everything to something akin to e-transfers, called PIX. It's operated by the Central Bank of Brazil, and does not charge any fees.

umm right so you'd rather everyone just be poorer? I hate to break it to you, but most of us are barely getting by too. Most small businesses don't survive 3 - 6 months and without that margin you wouldn't even have a place to shop in many cases.

USA swipe fees are way overpriced. Credit cards companies are as consistently profitable as big pharma.

bossman gonna say "minimum 3 pow"

0.3% credit cards, 0.2% debit card IRRC?

Yea but Europeans are smarter and more United.

What if banks blocks your money one day

We just don't shop at mom and pop shops anymore. They wanna run that 3% fee we won't buy there. Now we will go cash

@@pkwithmeplease Either way you are paying the 3%. When you purchase with credit card most prices have already up charged you by 3%. The only difference s that you might recoup some of that 3% with credit card rewards.

That's why they only recently allowed merchants to charge differently (by legislature after everyone's hooked on cards), for decades merchant agreement forbid that practice.

@@pkwithmeplease So you rather pay the fee built-in, that's all it means, this idea is as silly as free shipping.

@@middleagebrotips3454 It's great if the store offers a percent off for cash. It would only matter for large transactions of course, based on what he's saying. And your rewards get it back mostly anyway. Most of the time, I get more than 3% anyway so I'm the one who's REALLY making transactions expensive for businesses.

I’ve been to some places where they tell me the different prices if I paid cash.

@@stgermain6488 However you and I know that is not the norm. If all merchant started to charge 3% or at least give me a 3% discount. I would immediately stop using my card.

I’d recommend only using a credit card for paying gas, then cash for everything else. You’d be surprised to see how reluctant you’d get when your stingy and have to pay in cash 😂

A study done in Norway during the corona virus said there wasn't any increase in risk of infection from using cash.

Personally the cost of a $3 atm fee for a $100 withdraw is more than 2% through credit card

@@remsee1608 crazy how you people need to pay money to withdraw your own monry...

Cash is easier to hide from the tax collectors. That's the primary motivation. We see this when government adds a fee, so I mail them a check, which they now must process as incoming mail, open it, process the check payment by hand, then deposit that check in their bank, and then banks have to exchange the money and return the check to the buyer's bank. That's all cheaper apparently in the fake world. But fees that aren't flat, but based on the amount, are a fraud as the cost does not change by the value of the transaction.

@@VEVOJavier You're using an ATM's network. You're paying for convenience. You could just go to the bank and withdraw for free. Also ATMs cost money that need to be recouped.

You mean a gas station

Very true

Sounds ethical to me.

That's why I pay local businesses and professionals in cash, but pay multinationals with credit cards.

@@DrTait-gh3tu Nah, local grocery store in Sydney.

What should be and what is are two different things. Banks will never be limited by law as long as they are allowed to write the laws for their greater good, not our greater good. What controls our money is a private entity, not government. What people need to understand is the power in decentralized currency and the realization of the debt they call money now. Debt can be controlled, that is what finance is, control. Money is not finance, money is energy and has to be able to flow freely in order for us to truly benefit from the technology. People think an algorithm controls the value of things when they are all controlled by human decision, an algorithm will be truthful and follow what is rather than belief.

This is why digital currency has us moving towards the next step. If they keep the transaction fees down, we get both the convenience and the low cost WHILE keeping the power out of the banks that make the rules and print the money. Government does not like this because their friends run the banks.

It’s because its a business and needs to make money and provide jobs gosh you people dont ever think 🤦‍♀️

Exactly. The technology and ease-of-use was made possible by the fees. Someone has to pay for the multi-billion dollar networks and backend that handles these things. This video just goes to show that you should be using credit when prices are indifferent to the payment method.

@@Truthshouldalwaysbetold you had me until decentralized currency. Literally just have people control government or have the majority control on any corporate board. Can't algorithm your way out of this.

2%

As a retailer, I can tell you, even taking all the labor of counting in and out drawers, making transactional change for customers, bookkeeping, making bank runs, etc., it’s at least 3 times more expensive to take credit cards over cash. If we could realistically stop taking credit cards, we’d do it immediately! As it is, the banks have retailers over a barrel as they race to give more and more rewards to card users. Retailers really have no choice but to pay the ever higher fees.

@@andrewlenz and how is that, cash managment is such a waste of time that you can use it for something else and accept the fees, think about it, how do you order food how do you pay for plane tickets, if cash comes back there will be 1km queues for every basic thing

@@wizaaeed The whole point is to lower the fees to make it cheaper to accept credit card fees rather than count cash. Right now it is cheaper to only accept cash and spend time handling it, rather than accept the fees.

@@wizaaeed I’m an executive with a seven-figure business with a staff of 24 people occupying a 10,000 sq.ft. building, plus another warehouse. Trust me, accepting credit cards is very costly. An cash transaction is typically just as fast as a credit card transaction. And a bookkeeper still needs to reconcile CC processor statements. 2%-3% is a LOT of money. Not that we can, but if we stopped taking CCs, I could easily hire another full-time person with the savings. There’s no way handling cash vs. credit card requires a dedicated 8-hour/day person. You asked a question, as an expert on this topic, I answered it.

Exactly

Bingo!

All these fees reduce the taxable income so if a business is unprofitable due to the fees, the tax rate doesn't actually matter. Tax relief wouldn't solve that problem.

@@AuthenticTraveling actually tax is the much bigger portion. For example, sales tax is 8.25% in Texas. Paying cash?that 8.25% pure profit for the business. Also, as they can pretend they didn't sell anything, there is no revenue, only expenses. All the sudden they just went from making a profit to a loss on paper. Now they don't have to pay business tax, either. All these are much harder to hide if the bank/creditcard company has transaction records. Now you understand why they love cash transactions.

if that is ur concern then allow business to pass the 3% to customers. anyone pay with a credit card pay a 3% transaction fee.

Very good point. And virtually nobody carries substantial cash anymore. I'd say most carry NONE.

@@noahway13 I live in New Zealand. We got EFTPOS in the 1989 and everyone has an EFTPOS card I have never carried cash except for when I'm making illegal/grey market transactions.

Facts. Its also dangerous to carry cash in a big city, in USA

well, it's also easier to avoid tax with cash only. It probably evens out in the end, given that your business is in high demand.

@@noahway13 depends on the age. Under 35 - agree with you.

dumb ppl only see whats in front of them. dont tell em

You only have so much money total, so I guess credit card spending reduced your other kinds of spending.

If a merchant only accepts cash, they will certainly lose lots of business. The only feasible option is adding a fee directly to card users.

Lies again? Pay Services

I hate spending money tbh. The worst feeling is buying something and regretting it.

In Europe everybody uses debit cards. We don't have this problem because credit cards companies are not legally allowed to gauge out the retailers with massive fees

Use a debit card.

You can keep track of spending and save more money by using cash

@@YaYousef5 debit card = no rewards. Credit cards guarantee at least 1.5% discount if you have cash back, another main selling point to credit cards.

@@mc6372 Not in Europe, most of credit cards work just like debit cards, no rewards.

i mean the dark ages were great for the nobles, and the fintech industry are the nobles in this analogy so this is actually quite accurate

I would go listen to acquired’s (the name of a podcast) episode on visa if I were you. The visa system generally charges 1.6% interchange and this is not a US only thing, it’s been international basically since the beginning. The interchange fee basically goes back to the customer in one way or another. The system is actually pretty genius and I hadn’t appreciated it until I listened to that episode.

The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse is near.

@@Robertgriffinne Collapse is generous 1st time in our history with a full generation that wasn't taught financial literacy, civics, Google fixes their problems if their parents don't do it for them. Reckoning for participation trophies is incoming

Inflation is gradually going to become part of us and due to that fact any money you keep in cash or in a low-interest account declines in value each year. Investing is the only way to make your money grow and unless you have an exceptionally high income, investing is the only way most people will ever have enough money to retire. Personally I hired ‘’"Nicole Ann Sabin"’’ a financial advisor who sets asset allocation that fits my tolerance and risk capacity, investment horizon, present and future goals.

@@marianparker7502 Please, your coach you mentioned, how do i get in touch with her?

@@wiebeplatt4749 just look her name up online to get in touch with her, her details are provided online

Easy, Amex charges the most to the store.

Most merchants do not accept Discover cards either.

​@@Pheebe.Dee. wrong, they're accepted in 98% of US stores that accept cards.

Exactly, if you know how to control yourself and use credit cards correctly it’ll actually be a benefit for you. Plus, cash is also really unhygienic. I used to work retail while in college and you’d be surprised where a lot of people pull their cash out from. It’s absolutely disgusting. I rarely even touch cash anymore and I always make sure to wash my hands right away when I do.

@@enticingmay435 My first job at the McDonald's drive thru, some lady with lips glossed over with lipstick decided to put a cash bill in her mouth while she dug in her coin purse. Gross.

Robbers don’t know if you don’t have cash on you. It won’t stop you from being robbed again.

@@MrWarrenRB ...... By not having cash on you, the robbers are not able to take anything even if they rob you.

Credit card fees and interest are much higher on the long run as soon you get behind in the payments

This is contrary to the agreements those merchants have with Visa or Mastercard. I've always reported CC usage fees to my credit card issuer and they will likely refund the fee charged by the merchant and fine the merchant under the agreement or potentially terminate the agreement with the merchant.

@@evilbred974 I assume you mean their agreement requires them to charge just as much for a debit card as a credit card, right? Because all the large institutions I work with charge a "convenience fee" that I don't have to pay if I use direct ACH. For example, Southwest Gas and APS do it, and the government does it with the property taxes on my house.

@@karldavis7392 That's because the sad truth is large institutions negotiate custom deals with credit card companies.

@@evilbred974 Under what conditions have you reported businesses? Like how did it work, or what were they doing?

Winco doesn't accept credit cards, now I understand why.

All debit cards offer chargebacks, it's required by law. It's just the bank doesn't refund your money until after completing their investigation while credit cards offer a temporary credit during the investigation and then either finalize or remove the credit at the end of the investigation. There's nothing preventing banks from offering preliminary refunds during debit card chargeback investigations, they just want to push people to using more profitable credit cards. The insurance some credit cards offer is just another service being paid for with the higher swipe fees that get passed onto everyone regardless of payment type. There's nothing magic about credit cards that creates insurance and purchase protection in a way debit cards couldn't, except, again, debit cards don't generate as much revenue.

Exactly

Credit cards are also anti-consumer. Due to their duopoly, VISA and Mastercard keep raising their fees and guess what? The stores pass on that cost to you by raising their prices. North America has some of the highest processing fees in the world because other countries have passed laws to regulate these fees.

@@noseboop4354 then get amex

@@noseboop4354 Get a Citi double cash then, you won't lose anything.

hmm, that is an interesting point. But are you okay with the above video presented added costs fluctuations controlled by a monopoly of network operators. Bringing in competition also looks like a sound idea

@@angrybird29 there are CC networks beyond visa/ Mastercard. American Express and Discover cards are widely accepted. The alternative presented in the video is extending Durbin aka price controls. Look I understand why retailers would like the government to cap costs they are paying I’m just not very sympathetic.

@Moe Ermotz The privacy is the best pro of cash, but the c/c provides great records.

@Moe Ermotz Cash is hard to track and cumbersome. I haven’t withdrawn cash in years. Budgeting is also far easier with a card.

@Moe Ermotz I’m speaking from my own experience. I follow all of my transactions like a hawk. It is FAR easier to do that with a card where everything is laid out in a monthly list I can itemize and scrutinize. I am an accountant, so this is why I prefer this.

True UPI is a revolution in digital payments.

That sounds awesome.

East or West Upi is the best

Us government will not like it because it is free. Visa others will be destroyed . As it is happening in our country. It will seen as alternative to Swift system that US Gov will not like it.

@Kaushik Chakraborty UPI won't give any cashback or rewards

@@djick31 That is completely backwards. Advanced Asian economies have been essentially cashless for a decade or more and the United States is just stuck on old payment processing technology and paper money. I even still see some people writing checks in the grocery store likes it's 1972.

@@djick31 I like this idea because I can include it in my rewards calculation. IE: if my card gives me 2% back and cash gives me a 3% discount, I can use that as a reward.

I’m no accountant but I believe they are.

Yes but they still have to pay the cost of the fee. If they didn't have the cc fees than their income would be 2-3% higher.

all expenses are... you get taxed on profit. but that doesn't mean it doesn't cost them money. Relevant Seinfeld video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-XEL65gywwHQ.html

India has a similar system in place called UPI. Instantaneous direct bank transfers run by Banks at zero charge to end user.

Which companies are we talking about here? I work on the mainframe(the tech responsible for securing and processing credit AND debit card transactions through a program called CICS), and the mainframe has the highest level of security and uptime. The only downside is that the mainframe is very expensive.

I like the, give us your email and we will alert you of any changes or updates. I have yet to this day received any such emails. One was HP, they discontinued a service I was not aware of, worked on it for hours, went to HP support there was the notice.

@@jamesbaxter222 shutout to zVse!

My guess is that the fees in China are considerably lower than here. Reward cards subsidize the well off.

Try chargeback when you paid with cash?

One reason would be hiding income from the tax system.

@@nametag4277 I think going through bank system will not be able hide at all. It’s more likely a trust problem, or maybe the checking process, which by itself a lot of additional work.

This would only work if you have a standard that is the same across all banks, but that isn't the case. That is why card processing services are available to help minimize this fragmentation at a cost.

That's the case in most SEA countries, but at least here in Indonesia, and I know in India too, it's not a direct account to account transfer. The transaction still goes through a central interchange that charges a 0.7% fee. I wouldn't be surprised if it's the same in Thailand (I used the qr payment through my kbank app a lot while I was there). Still much cheaper than accepting card but this is one of the reasons why some merchants, especially those with very thin margins, still don't want it.

@@LittleRadicalThinker I know, I was talking about cash transactions

How did they know the prices were not rising because of other factors (i.e. - inflation) ?

In Brazil we have an instant payment network since Nov 2020 that connects all banks and small payment institutions and cost all them 1 cent for every 1000 transactions (and through many banks it's free for customers and merchants). But prices haven't lowered because of that. Though in aggregate merchants are certainly saving billions in fees and many jobs have been created in the payment industry. And banks are saving a lot in cash handling. Though life is equally difficult as it used to be.

I mean no it's not an overnight lowering of all prices, it's a gradual process that takes time. One business may decide "I'm not going to put my prices up along with my competition despite my costs raising so I can hopefully steal some of my competitions customers" and be able to do so because of the lower fees they are paying on transactions than they used to, and then quickly the other businesses have to start following suit or lose their business to the people who are undercutting their prices and taking advantage of those lower fees. Or maybe they don't cut the prices of goods at all from what it would have and instead offer their employees a raise they couldn't have afforded to offer otherwise, and attract the best quality employees that can provide the best customer service and try and attract more customers that way. If you ask me credit card rewards programs shouldn't even exist. It's basically you being sold a product or service you otherwise never would have paid for by hiding the cost of it in the sticker price you pay for your shopping to make it appear free. Even worse, you're paying for someone elses credit card incentive program if you decide that you don't want to get a credit card yourself. Taking out credit shouldn't be something that is rewarded or incentivised, it should be avoided where possible. I understand I need a loan if I am going to buy a house - I do not need a monthly loan of the same amount as my pay which is what credit cards get you to do.

@@StreakyBaconMan that never happens in practice. It's been proven that businesses all over the world never lower their prices when there is an interchange fee cap. They just pocket all the money to themselves because they get greedy.

@@absolutelypitiful3837 In a free market that just isn't possible. SOMEONE is going to take advantage of lower costs to offer lower prices eventually, and their competition is forced to lower their prices in response. Or if not lower the prices, at least increase the prices more slowly. It makes absolutely no sense to think that every single last person in the retail industry would decide to not take advantage of lower costs to cut prices and drive up business. It's just the fact the results aren't instantaneous that makes people think that they don't see any savings personally. And you can't just say "it's been proven" and leave it at that. If it's been proven, show me and I'll change my mind. It hasn't been proven at all. You've just assumed it.

Credit card fees range wildly. I can cost a merchant up to 6.25% with my cards, depending on who they are.

The video literally said that some fees are crazy.

The cashback from the card can make the difference

AMEX is still horribly more expensive. Figure at least 3% for the cheap ones and as high as 4.5 or even 5% sometimes. Discover is cheap though.

My prediction is that over time the fees will drop lower and lower as more competitors come around as CC usage increases.

They capped interchange fees in Europe at 0.3% and found that the majority of merchants reduced their prices. We already know it works.

@@YaYousef5 we capped prices for debit in the US and prices were unchanged. I seriously doubt that capping interchange will result in a price reduction, but in higher profits for merchants. Which is fine but lower prices are extremely unlikely

YOU know the machines can take CASH and credits cards....atleast they do where I live.

Truuu

its kinda crazy how things changed in just a few years like only 2 years ago I started using upi and now even my parents are using upi to shop instead of cash. now it is expanding overseas so i would love to see a video about it

United Press International?

@@jimwerther upi = unified payment interface. its basically like paypal except you don't need a wallet and payment can be done in any app. so it has become the largest mobile payment interface in the world this year

@@anustubhmishra Thank you for explaining 👍

Is this PMC?

Is it an official Apple store or a licensed third-party store? Because as far as I know, there’s NOT YET an official Apple store in the PHL as of August 2022.

@@PaulMaglaya third party, common sense isn’t a thing?

@@wavenskie Use your common sense and buy yourself grammar lessons.

Exactly! So many of these small business owners think that the CC fee is taking away from their net profits, when the fee is the price to pay to exponentially increase them.

thanks for the input.

@@TimBryan 🎯

Agreed. I personally wouldn’t shop at cash only places unless absolutely necessary.

I'm sure you do increase sales by accepting credit cards. I am sure you would have increased sales by an equal amount by accepting credit cards that charged lower fees because it was illegal to charge more.

That's just taking money from people who don't pay with credit cards and giving it to the credit card company and their customer. It's hardly the shops fault

@@Crovea then go cash only. No one is making businesses take credit cards.

@@giantlabs VISA and mastercard are forcing the businesses to take credit cards. They can't just accept reasonable fee'd debit cards

It’s not a surcharge. It’s a cash discount !

The other major factor is that there are millions of people with bad credit scores who will rack up huge amounts of interest. The bank is aware of this, the people who are irresponsible with credit end up effectively paying for some of the rewards given to the people with high scores and fancy cards.

@@nothanks8839 yeah for regular cards but I meant specifically for cards are only accept you with very high credit score, high annual earnings. But I do suppose credit card companies all have lower tier and higher tier credit cards, so the profit they make off of people with lower tier cards make up for any loss they recieve on their higher tier cards

yeah, arguably you could collect a few extra dollars over the course of a month with the money sitting in your bank account, but honestly, that's not going to cover the higher costs in the first place.

There’s apps that allow payments with your debit like Klarna, sezzle, affirm, and zip pay. Just wanted to let you know

Yes, but isn't it a little annoying you have to work to game the system(and be incentives to spend more) to not get screwed by subsidizing these fees.

@@Bobbobbob984 it's not really getting screwed though. If you can afford it, use cash if you don't wanna pay that fee. I'd much rather pay that fee than having to carry cash on me. The high interest rates regardless of your credit score are a much bigger issue. I never pay interest because I pay my cards down. But I have a 760 credit score and only one of my 5 credit cards are under 20%

But when places start charging surcharges, it’s usually like 3%. Usually rewards on credit card rewards are like 1-3%. At that point the rewards incentive of a credit card kind of goes out the window.

Yea, i mean you do use the credit card after reading the terms and conditions, you can always choose to not use credit card and instead use debit card/cash

Yeah, well, that's easy to avoid, only spend the money you have and don't carry a balance. The credit card company is offering you a completely uncollateralized loan that you can use for basically any purchase with a month's grace period. That's why the interest rate is so high, there's no guarantee of repayment and people frequently default on credit card debt. If the interest rate was low, then they wouldn't be able to offer credit cards at all.

Apple Pay gets the cut from the issuing bank. And the bank also pay Visa/Mastercard processing fee. So it’s just the same as credit card

...and if they don't like, they get thrown out of a hotel window

The problem is the fees are astronomical (up to 5% for some mastercard card). Credit card company got greedy and upped their fees a lot and there is no competitions. THink about it, us the consumers are the one benefiting from the credit card but its someone else that pay (shop owners). So Visa give us more reward, we get their cards over their competitor then shop owner have to pay for those rewards. Debit have fair fees and most retailer don't complain about those.

@@dilididli2274 "So Visa give us more reward, we get their cards over their competitor then shop owner have to pay for those rewards." But nothing stops the shop owner from closing the circle and just passing the fees back to the consumer. And with regards to debit, It varies widely by region. At least where I live in Canada, using debit and going through the Interac system means ridiculous levels of fees (usually charged PER TRANSACTION unless you have a higher tier of bank account) for the card user. At that rate. I would rather use credit and just let the store pass the fee back to me, and I would get it back via cashback. At the end of the day, it's not like the banks lose out if you use debit....They literally hold your money, and they will find a way to screw someone over no matter what.

@@skifree0 Almost every credit card have contract that prevent stores to charge the fees to the customers. As for debit, I don't know a single canadian bank that charge over 50cents a transaction so I fail to see how it is astronomic comapred toc redit card fees. Even if the store would pay for that 50c + his own debit card fees, it still would be cheaper then any credit card for purchase over 20$. And there is so many bank that offer fee transaction fi you meet a few requirement that should easely be met by any middle class person.

​@@dilididli2274 What prevents the store from just treating the fees as a generic cost of business and adjust prices as a whole to cover said expense? As you say if cards holders get cash back anyways its a net-zero to the customer. Debit doesn't get used much because there is no consumer incentive to use it, while there is for credit. To me it's a no brainer...I actually have unlimited transactions on my debit. Why would I use that if my Credit Card has cashback. Sure the credit card networks/merchants pay for it, and they have every right to raise their prices as a whole to help cover that cost of business...But that's a net zero to me, Prices are slightly higher, only to be deducted back by my card. And you still have the perks of a CC, like building credit and the fraud protection. Where is my incentive to use debit? That I forfeit my cashback for the "hope" that the merchant returns the favour and lowers their prices?

I've seen some stores give 'discount for cash payment'. I think it's better idea than saying 'credit card charge'.

@@kiagenwa number one rule in psychology a loss hurts way more than a gain saying you give cash purchases a 2% discount is far more effective than a 2% surcharge

Outside America it's routine for many stores to add a credit card surcharge. If you swipe a credit card at a store you have to press Enter to agree to the surcharge before you enter your PIN.

If I see a cash only at a restaurant I won’t eat there. There are to many restaurants to be forced to pay cash.

@@bngr_bngr not gonna lie the best food is at the cash only restaurants

They put a sign out saying “We don’t accept credit cards” or just tell you at the counter. Corner shops are a good example of either not accepting them or adding a 3% surcharge onto the total.

Yea sales tax here is about 12% on some purchases when you add in the mandatory government imposed "fees" on top of sales tax.

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Debit run as credit are still somewhat expensive and CAN have rewards. Think of the paypal debit card. I used to get 1.5% cashback running it as credit. But yes, when a pin is entered (done as debit) the fee is just a flat 20 or 30 cents, and nothing in regards to the size of the transaction.

@@Dudanation12 did you watch the video. debit cards are capped

No, you're just getting your money back because the stores raised their costs.

But what if that $2000 cash back cause your bills to be $6000 more? You don't know how much extra you are paying to get that $2000

@@ttrev007 I pay $0 extra

@@chrischungy and you lose money if you pay cash for the store raising their price

You're a real dope if you think you're actually gaining on the credit card company. I'll bet you've got a fool proof way to win the lottery too.

The thing about credit cards are rewards I get 4x back in restaurants, but my points can be redeemed 2 cents per point making it around 8 percent on my purchases. I will never stop using credit cards you will always end up loosin money with cash and debit.

No, if a retailer raises the cost by 5% because they are being charged .27% for CC processing, that’s just greed. However I as a CC user, get at least 2% back for every purchase along with other benefits that cannot be had with cash.

@@sebastianmizzell7541so basically we are stuck in a Chinese finger trap. Business pulls one way while the consumer pulls another.

So use cash and spend the same amount as those getting 5% back except you get nothing lol

That 50 bucks a month you get back needs to come from somewhere... ain't nuthin' fo free

Then why would anyone use credit card?

@@anuanand4020 convenience & security

All the major CC companies put in their T&S that part of accepting CC transactions is they can't pass the interchange fee onto the customer. If consumers knew how merchants raise their prices to equalize the interchange fee, they'd realize their rewards are a deceptive illusion.

@@RemcoAlexanderPhD Doubt that many would want to pay 3-4% fees for convenience and security for much of their purchase. Would still be used for online purchase but thats it.

@@anuanand4020 - consumers are already bearing the cost of those interchange fees. There are only 2 real differences. 1) the fees are averaged out among all consumers instead of each person paying their fair share. Some consumers are subsidizing others. Cash payers are subsidizing everyone. 2) the fees that people pay now are hidden. They're hidden in the form of higher prices on goods. If those fees were suddenly transparent, it wouldn't increase the cost to the consumer. It would allow people to see what costs they're already paying and allow them to make an informed decision about whether or not to use a credit card. Many would choose not to use credit cards as often anymore, and that's not a bad thing. Many people would rather save $10 on food by paying cash instead of the current alternative: you pay $10 more to cover credit card fees, and then you get $7 worth of rewards.

And they don't even go to the government. They just go to some greedy corporation instead.

I definitely agree