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That is correct. Merchants and customers who aren’t gaming their credit cards lose money. Credit card fees end up as a transaction tax on a huge part of the ec

That is correct. Merchants and customers who aren’t gaming their credit cards lose money. Credit card fees end up as a transaction tax on a huge part of the economy. The folks who have figured out how to insert themselves into the money flow (Visa et al.) are sucking a huge profit out by slightly taxing everyone else. As a side benefit for the credit card companies, they also collect data about everyone’s purchases, and can earn extra money by selling that data to the highest bidder, compromising customer privacy. The system is in need of some strict regulatory oversight, but card networks can afford expensive lobbying / campaign donations, so don’t hold your breath.

AmericanChopper 8y ago
Calling it a tax belies the enormous benefit that the payment networks have for customers and merchants. The fact you can make a purchase from most of the merchants in the world, with a card issued from your local bank is an extraordinary convenience. I think a lot of the commentors here don’t know (or have forgotten) how tedious and slow international/online shopping or travel used to be when it came to money/payments. You don’t know slow and unreliable payments until you’ve had to mail somebody a cashiers check.