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>The merchant raises prices to offset the fees, which offset the customers' rewards. If this were true, why would merchants care about merchant fees?
by pravda 10y ago
>The merchant raises prices to offset the fees, which offset the customers' rewards.
If this were true, why would merchants care about merchant fees?
- bemmu 10y agoRaising your price leads to less sales.
- gozur88 10y agoThey don't, really, as long as they're not disadvantaged compared to the competition. The people who are getting screwed are people who pay cash or use cards without rewards programs.
- pravda 10y agoOh...I assure you they do! Why? Because these fees come out of profits.
- gozur88 10y agoMerchants will charge more when profits drop. None of this is coming out of profits. They only time it comes out of profits is when competitors have some advantage that prevents the merchant from passing increases on to the customer.