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I don’t pay a fee on my credit cards, the merchant does, and in case of fraud I can issue a chargeback to boot. As long as I pay my balance each month, my credi

I don’t pay a fee on my credit cards, the merchant does, and in case of fraud I can issue a chargeback to boot. As long as I pay my balance each month, my credit card is free, plus generating rewards. That’s almost the opposite of cryptocurrency, where far from being able to tackle fraud, it makes theft or loss nearly impossible to remediate. A credit card is also one of the easiest things to use, and all of the hard work on security is undertaken by merchants and the credit card issuer.

StavrosK 8y ago
If the merchant pays something, you pay something. Where do you think the merchant gets the money from?
yebyen 8y ago
> I don’t pay a fee on my credit cards, the merchant does While that may be technically correct, it's ignorant of the fact that costs are always passed down the line in any economic relationship like you're describing. That fraud protection costs the card issuers, which is the basis for that merchant fee, and the merchant passes the cost on in the form of higher prices. (Merchant accounts with higher fraud rates will pay higher fees!) So from another perspective, you actually are paying the bill for those unknown percentage of frauds, which you wouldn't be as much on the hook for so directly if only everyone was responsible for their own individual security.
- toufiqbarhamov 8y ago
  If the price of Good N is Value of N+x where x is a markup to cover the costs you’re talking about, that cost is passed on to people who pay with any means. If I buy a TV with cash, or credit card, it costs the same. Except of course that I can get cash back on my card, but not with cash (or bitcoin). So, credit card or not, the cost is there, even if I pay with bitcoin or ether. Except of course for the benefits of the credit card.
  - nonbel 8y ago
    >" that cost is passed on to people who pay with any means. If I buy a TV with cash, or credit card, it costs the same." If people start charging less when paid via methods that have less chargeback risk will you reassess?
    - thiagotomei 8y ago
      As a matter of fact, this (merchants giving a discount for cash transactions) used to be illegal in Brazil. It recently became legal, but I haven't seen much evidence of changes.
      - nonbel 8y ago
        Cash is also more easily counterfeited than card transactions. I'm not sure how the risk of a fraudulent transaction works out in the end.
    - toufiqbarhamov 8y ago
      It would have to be savings in excess of what I’d get through rewards or cash back, and I’d have to trust the, utmyes id reasses.
    - deleted 8y ago
      [deleted]
  - kazinator 8y ago
    > If I buy a TV with cash, or credit card, it costs the same. Only if the vendor of the TV is abiding by the rules of the credit card provider not to offer discounts for cash transactions. In effect, the customers buying TV's with cash, paying the same, are paying a "credit card tax" to support the credit card users. Also, they pay the same, but don't earn any of the incentivizing kickbacks (points, cash back, ...).
jazzyjackson 8y ago
The seller passes the savings onto you ;)
deleted 8y ago
[deleted]
kazinator 8y ago
> I don’t pay a fee on my credit cards, the merchant does You're transacting with the merchant, and a third-party, the credit card company, helps itself to a piece of the action. Whether that is coming from you or the merchant is the wrong view. The transaction between the two of you pays it.

StavrosK 8y ago

If the merchant pays something, you pay something. Where do you think the merchant gets the money from?

yebyen 8y ago

> I don’t pay a fee on my credit cards, the merchant does While that may be technically correct, it's ignorant of the fact that costs are always passed down the line in any economic relationship like you're describing. That fraud protection costs the card issuers, which is the basis for that merchant fee, and the merchant passes the cost on in the form of higher prices. (Merchant accounts with higher fraud rates will pay higher fees!) So from another perspective, you actually are paying the bill for those unknown percentage of frauds, which you wouldn't be as much on the hook for so directly if only everyone was responsible for their own individual security.

toufiqbarhamov 8y ago
If the price of Good N is Value of N+x where x is a markup to cover the costs you’re talking about, that cost is passed on to people who pay with any means. If I buy a TV with cash, or credit card, it costs the same. Except of course that I can get cash back on my card, but not with cash (or bitcoin). So, credit card or not, the cost is there, even if I pay with bitcoin or ether. Except of course for the benefits of the credit card.
- nonbel 8y ago
  >" that cost is passed on to people who pay with any means. If I buy a TV with cash, or credit card, it costs the same." If people start charging less when paid via methods that have less chargeback risk will you reassess?
  - thiagotomei 8y ago
    As a matter of fact, this (merchants giving a discount for cash transactions) used to be illegal in Brazil. It recently became legal, but I haven't seen much evidence of changes.
    - nonbel 8y ago
      Cash is also more easily counterfeited than card transactions. I'm not sure how the risk of a fraudulent transaction works out in the end.
  - toufiqbarhamov 8y ago
    It would have to be savings in excess of what I’d get through rewards or cash back, and I’d have to trust the, utmyes id reasses.
  - deleted 8y ago
    [deleted]
- kazinator 8y ago
  > If I buy a TV with cash, or credit card, it costs the same. Only if the vendor of the TV is abiding by the rules of the credit card provider not to offer discounts for cash transactions. In effect, the customers buying TV's with cash, paying the same, are paying a "credit card tax" to support the credit card users. Also, they pay the same, but don't earn any of the incentivizing kickbacks (points, cash back, ...).

jazzyjackson 8y ago

The seller passes the savings onto you ;)

deleted 8y ago

[deleted]

kazinator 8y ago

> I don’t pay a fee on my credit cards, the merchant does You're transacting with the merchant, and a third-party, the credit card company, helps itself to a piece of the action. Whether that is coming from you or the merchant is the wrong view. The transaction between the two of you pays it.