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I think they clearly have value, but the problem is that it's hard for the market to settle on the true value because of the games they play with credit card po
by berberous 9y ago
I think they clearly have value, but the problem is that it's hard for the market to settle on the true value because of the games they play with credit card points. They've tricked consumers into thinking that credit cards incur no costs, but in fact give them cash back and points.
If points were banned, and consumers instead paid the credit card fee as a line item on their receipt next to taxes, you might find more downward pricing pressure or consumers willing to pay cash.
- deleted 9y ago[deleted]
- Spivak 9y agoWell duh, of course people would prefer cash if their credit card started costing them money. Credit cards are basically free to the consumer. You could argue that the ever-present fees causes the prices of goods to go up to compensate but it's just really not the case. You can look at merchants that accept and don't accept credit cards and you won't see really any tangible difference between the prices of their services.
- saghm 9y agoThere are a decent number of places that have a minimum price for using a card, and I've even seen gas stations that charge extra per gallon if you pay with credit instead of cash. I definitely agree that in the overwhelming majority of cases there isn't a difference to the consumer, and even when there is it's fairly slight.