5 ms·
Except that the bulk of the fees to the merchant are paid back out to cardholders in the form of rewards and cashback. So it's closer to a wash.
by pbreit 8y ago
Except that the bulk of the fees to the merchant are paid back out to cardholders in the form of rewards and cashback. So it's closer to a wash.
- darawk 8y agoVisa still managed to make $15 billion in gross profit last year. Seems pretty significant to me.
- magnetic 8y agoSomeone seems to have computed the cash vs CC money flow: 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... "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."