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There's a lot of truth to that (cash paying customers pay the same, even though the cost to serve them is less). But unrewarded cards aren't really any differe

There's a lot of truth to that (cash paying customers pay the same, even though the cost to serve them is less). But unrewarded cards aren't really any different. Most merchants still have to pay the same high fee for them. Since the bank/processor is going to take the maximum amount of money they can regardless, and most merchants will have to pay that full fee regardless, you might as well use a rewards card over an unrewarded one.

aspratley 11y ago
Handling cash isn't free for a merchant. It has to be stored, counted, transported, banked, insured and it's easily stolen. Even though the fees aren't the same cash still has a fee.
Symbiote 11y ago
(In the UK) American Express cards offer the best rewards, but the cost to the merchant is much greater. Many shops or restaurants don't accept AmEx, and sometimes those that do will say they prefer you to use an alternative card. But within one network, I think it's correct that the cost is the same regardless of the card's promotion.