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I know, it seems great. But who is paying for that fraud protection? Who is paying for that customer service team? Who is paying for the fact you get paid to us

I know, it seems great. But who is paying for that fraud protection? Who is paying for that customer service team? Who is paying for the fact you get paid to use it? In the end.. It's you, through slightly higher prices on everything you buy every day because retailers have to price in the cost of credit card fees that pay for all that.

jayd16 8y ago
Most of the time there's no explicit CC charge so you'd still be paying for it whether you paid cash or not.
- plantain 8y ago
  That means you're paying it when you pay cash too....
  - NullPrefix 8y ago
    Subsidizing card users.
- Woofles 8y ago
  In fact I'm pretty sure Visa and Mastercard forbid charging a different price if customers pay in cash.
  - paulie_a 8y ago
    In the US, that is no longer true. They can at least have a minimum, not sure if they can charge differently, but for small purchases it is effectively the same
  - toast0 8y ago
    They don't forbid charging a different price, or even advertising a different price; they only forbid advertising a surcharge for using a card. An advertised cash discount is acceptable. States may have further requirements, for example, California requires gas stations report credit prices in at least the same size numbers as cash prices, but enforcement is light.
expiredtofu 8y ago
It's not just the merchants, but also the number of people who are not paying the full amount owed each month and accruing interest.
mseebach 8y ago
I've seen an estimate that credit cards are actually slightly cheaper overall for the economy than cash, when you factor in everything. The physical infrastructure to deal with cash is not cheap.
- stanleydrew 8y ago
  Even without the physical infrastructure it might be cheaper to use credit cards. How much cash is lost in loose change after small transactions every year? I'd bet more than 2%
  - ktta 8y ago
    Of cash used in every day transactions? Maybe. Of cash used in bigger transactions that are replaced by credit cards? No way
  - imustbeevil 8y ago
    This is actually a benefit because it subtly counteracts inflation.
- someonewhocar3s 8y ago
  Still refusing to compare to crypto? Anti-nerds should get kicked but I probably got shadowbanned somehow by now ;)
- Silhouette 8y ago
  Those two aren't the only options, though. Many other electronic payment methods exist that are better than credit cards in almost every way.
  - PenguinCoder 8y ago
    Which payment methods are readily available to consumers and business owners that is 'better than credit cards in almost every way'?
    - 8y ago
fauigerzigerk 8y ago
That's how insurance works. Spread the damage to across many so no one gets hurt real bad.
chipperyman573 8y ago
In the end it's the (usually) poor people who bought more than they could afford (either because they needed food or because they couldn't control their impulse buys) and are stuck paying interest on things they bought years ago
- DaiPlusPlus 8y ago
  Credit card interest payments go to the bank. Visa/MasterCard don’t get any of that.
  - expiredtofu 8y ago
    I thought the bank was the one that provided the fraud protection, customer service, etc.
    - willstrafach 8y ago
      Fraud protection is not really “provided” by anyone, it is simply a reversal of the charge, leaving the affected merchant holding the bag.
codeismylife 8y ago
> retailers have to price in the cost of credit card fees Do retailers actually do this? I briefly worked in retail a while back and the payment processing fees(online and offline) were all considered to be part of the cost of doing business and essentially taken up by the merchant. Today I provide ecommerce solutions and all my merchants haven't priced in the cost of payment processing either. They aren't necessarily happy about it but they consider it to be part of the cost of engaging in commerce in the modern world otherwise they'll be annihilated by their competitors if they don't provide easy ways to accept payments from their patrons.

jayd16 8y ago

Most of the time there's no explicit CC charge so you'd still be paying for it whether you paid cash or not.

plantain 8y ago
That means you're paying it when you pay cash too....
- NullPrefix 8y ago
  Subsidizing card users.
Woofles 8y ago
In fact I'm pretty sure Visa and Mastercard forbid charging a different price if customers pay in cash.
- paulie_a 8y ago
  In the US, that is no longer true. They can at least have a minimum, not sure if they can charge differently, but for small purchases it is effectively the same
- toast0 8y ago
  They don't forbid charging a different price, or even advertising a different price; they only forbid advertising a surcharge for using a card. An advertised cash discount is acceptable. States may have further requirements, for example, California requires gas stations report credit prices in at least the same size numbers as cash prices, but enforcement is light.

expiredtofu 8y ago

It's not just the merchants, but also the number of people who are not paying the full amount owed each month and accruing interest.

mseebach 8y ago

I've seen an estimate that credit cards are actually slightly cheaper overall for the economy than cash, when you factor in everything. The physical infrastructure to deal with cash is not cheap.

stanleydrew 8y ago
Even without the physical infrastructure it might be cheaper to use credit cards. How much cash is lost in loose change after small transactions every year? I'd bet more than 2%
- ktta 8y ago
  Of cash used in every day transactions? Maybe. Of cash used in bigger transactions that are replaced by credit cards? No way
- imustbeevil 8y ago
  This is actually a benefit because it subtly counteracts inflation.
someonewhocar3s 8y ago
Still refusing to compare to crypto? Anti-nerds should get kicked but I probably got shadowbanned somehow by now ;)
Silhouette 8y ago
Those two aren't the only options, though. Many other electronic payment methods exist that are better than credit cards in almost every way.
- PenguinCoder 8y ago
  Which payment methods are readily available to consumers and business owners that is 'better than credit cards in almost every way'?
  - 8y ago

fauigerzigerk 8y ago

That's how insurance works. Spread the damage to across many so no one gets hurt real bad.

chipperyman573 8y ago

In the end it's the (usually) poor people who bought more than they could afford (either because they needed food or because they couldn't control their impulse buys) and are stuck paying interest on things they bought years ago

DaiPlusPlus 8y ago
Credit card interest payments go to the bank. Visa/MasterCard don’t get any of that.
- expiredtofu 8y ago
  I thought the bank was the one that provided the fraud protection, customer service, etc.
  - willstrafach 8y ago
    Fraud protection is not really “provided” by anyone, it is simply a reversal of the charge, leaving the affected merchant holding the bag.

codeismylife 8y ago

> retailers have to price in the cost of credit card fees Do retailers actually do this? I briefly worked in retail a while back and the payment processing fees(online and offline) were all considered to be part of the cost of doing business and essentially taken up by the merchant. Today I provide ecommerce solutions and all my merchants haven't priced in the cost of payment processing either. They aren't necessarily happy about it but they consider it to be part of the cost of engaging in commerce in the modern world otherwise they'll be annihilated by their competitors if they don't provide easy ways to accept payments from their patrons.