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You do. The store just gets higher margin on cash-paying customers.

• magnetic 8y ago
  He is the consumer, so he doesn't, because as you pointed out, it's the store that is on the hook for CC "transaction fees", not the consumer.
  • PretzelPirate 8y ago
    Many small businesses raise their prices to offset credit card processing fees. Because of that, the consumer is paying the fee regardless of whether they pay in cash or with a card.
    • magnetic 8y ago
      Apparently not: https://www.bostonfed.org/publications/public-policy-discussion-paper/2010/who-gains-and-who-loses-from-credit-card-payments-theory-and-calibrations.aspx https://www.bostonfed.org/publications/public-policy-discuss... "Merchant fees and reward programs generate an implicit monetary transfer to credit card users from non-card (or "cash" ) users because merchants generally do not set differential prices for card users to recoup the costs of fees and rewards. On average, each cash-using household pays $149 to card-using households and each card-using household receives $1,133 from cash users every year."
      • PretzelPirate 8y ago
        This is interesting. I was going off of the information I've received from small business owners in the Seattle area who I've formed personal relationships with, and who have told me how they increased their prices specifically to offset the cost of credit card fees.