4 ms·
In 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
by keerthiko 10y ago
In 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.