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The merchant takes this cost into account when setting prices. The money comes from the buyers.
by robotresearcher 10y ago
The merchant takes this cost into account when setting prices. The money comes from the buyers.
- gozur88 10y agoIt comes from the buyers as a group. But not everyone pays with a credit card, and not every card has the same fee to the merchant.
- keerthiko 10y agoIn that case the cost burden is primarily from the buyers using non-rewards credit cards or cash with those merchants, since they are typically paying the same $ price without getting the utility of the credit card cost factored into whatever they are paying. I guess a lot of people pay the same price for a product or service and don't use every aspect of it.
- robotresearcher 10y agoThat's right. But the merchants tolerate it because the people with high-end cards tend to spend more money per person compared to a bare-bones cardholder. On the miles cards, the merchant hopes to make out by getting larger sales, albeit keeping a smaller percentage.
- prostoalex 10y agoCash has embedded costs as well. Precautions are taken against employee theft or robberies. Somebody with an armored vehicle is also getting paid to drive the cash to the bank at the end of the day and bring enough coins and paper currency in proper denominations so that cashiers can make change the next day.
- vinceguidry 10y agoBy this logic, nobody really pays for anything. The buyers get their money from their jobs, so is it employers that are really paying for miles?