4 ms·

> We get the reward points with none of the drawbacks. A small nitpick would be that there is a drawback: the cash value of the reward points is less than the

> We get the reward points with none of the drawbacks. A small nitpick would be that there is a drawback: the cash value of the reward points is less than the additional cost of doing business for the merchants you pay via credit cards. Granted, if everyone else is using credit cards while you use cash, you get hit with that drawback without the benefit of recouping a portion of that value by way of points.

douche 10y ago
Unfortunately, in most cases, you are not given the option of the discount for not using a credit card - the cost is baked in and amortized over all transactions. Aside from a few gas stations that offer a cash discount and under-the-table transactions, I've seen so benefit to not using a credit card.
- kazinator 10y ago
  This is rather baked in agreements that the merchants signed with the credit card companies, where it is stipulated that they must not make goods cheaper for cash paying customers.
  - decwakeboarder 10y ago
    Most are worded such that a merchant can't "charge more for using a credit card", making cash discounts OK.
kazinator 10y ago
That's because the merchant won't give you a discount for handing over a wad of cash. They just pocket the extra that would have gone to the interchange fees if you had paid by credit. So you'd be stupid not to just play the game and use credit. If a merchant gave me a solid 4% discount for handing over a wad of cash, I'd put away the credit card.
- brianshaler 10y ago
  "They just pocket the extra" is another way of describing a business' profit margin. The point here is in order to pocket enough extra to stay in business, they need to increase prices in order make up for the additional cost of credit card transactions. They don't and can't give you a solid 4% discount for cash payments (or a credit card surcharge) because it is generally against the terms of their merchant agreement and they would be at risk of losing their ability to process credit card transactions altogether. My original comment was merely reflecting on the fact that the perceived upside of getting rewards is dampened by increased costs that are passed all the way back through to the consumer anyway.
- r00fus 10y ago
  While it is legal for merchants to charge more for CC transactions (giving the buyer incentive to not use cards), I think this is relatively new. It wouldn't hurt, IMHO, to just ask a vendor if they can give you a discount for cash. Some groceries near me (given the large Asian/Indian population) simply don't accept CCs. Some accept debit cards, and give you an incentive for cash.
camelNotation 10y ago
Everyone else is using credit cards, whether I choose to or not. I'm paying that price increase either way. I might as well get some benefit. It seems idealistic in an "I'm voting 3rd party" sort of way to think that by being stubborn I will change the whole system. However, if a movement began to gain traction towards cash-only purchasing, I might join it. I'm not under illusions about my own influence on the world - I have none.

douche 10y ago

Unfortunately, in most cases, you are not given the option of the discount for not using a credit card - the cost is baked in and amortized over all transactions. Aside from a few gas stations that offer a cash discount and under-the-table transactions, I've seen so benefit to not using a credit card.

kazinator 10y ago
This is rather baked in agreements that the merchants signed with the credit card companies, where it is stipulated that they must not make goods cheaper for cash paying customers.
- decwakeboarder 10y ago
  Most are worded such that a merchant can't "charge more for using a credit card", making cash discounts OK.

kazinator 10y ago

That's because the merchant won't give you a discount for handing over a wad of cash. They just pocket the extra that would have gone to the interchange fees if you had paid by credit. So you'd be stupid not to just play the game and use credit. If a merchant gave me a solid 4% discount for handing over a wad of cash, I'd put away the credit card.

brianshaler 10y ago
"They just pocket the extra" is another way of describing a business' profit margin. The point here is in order to pocket enough extra to stay in business, they need to increase prices in order make up for the additional cost of credit card transactions. They don't and can't give you a solid 4% discount for cash payments (or a credit card surcharge) because it is generally against the terms of their merchant agreement and they would be at risk of losing their ability to process credit card transactions altogether. My original comment was merely reflecting on the fact that the perceived upside of getting rewards is dampened by increased costs that are passed all the way back through to the consumer anyway.
r00fus 10y ago
While it is legal for merchants to charge more for CC transactions (giving the buyer incentive to not use cards), I think this is relatively new. It wouldn't hurt, IMHO, to just ask a vendor if they can give you a discount for cash. Some groceries near me (given the large Asian/Indian population) simply don't accept CCs. Some accept debit cards, and give you an incentive for cash.

camelNotation 10y ago

Everyone else is using credit cards, whether I choose to or not. I'm paying that price increase either way. I might as well get some benefit. It seems idealistic in an "I'm voting 3rd party" sort of way to think that by being stubborn I will change the whole system. However, if a movement began to gain traction towards cash-only purchasing, I might join it. I'm not under illusions about my own influence on the world - I have none.