5 ms·

> but I'm very convinced that you end up paying more in the end This is actually the same tact credit card companies use, even if the balances are paid off ev

> but I'm very convinced that you end up paying more in the end This is actually the same tact credit card companies use, even if the balances are paid off every month. That's why we still use budgeted cash from envelopes to pay for most things. The only payments we run through a card are fixed costs where the percentage paid back on the card exceeds the transaction fee if any.

whoopdedo 8y ago
You're still paying for credit card transaction fees indirectly when you use cash. Since retailers are prohibited from charging discounts for cash purchases then to cover the card fees they raise the price for everyone. Cash buyers end up subsidizing card users.
- hopler 8y ago
  In USA it is no longer legal to forbid cash discounts / CC surcharges. Still uncommon though.
  - deleted 8y ago
    [deleted]
- gbear605 8y ago
  At least your money is often going to a local business rather than a big credit card company
- 0x445442 8y ago
  The fees aren't the point. The point is, using something other than cash tends to trick people into spending more in the same way buy one get one free does.
  - lotsofpulp 8y ago
    People being unable to control their impulse to buy something they can't afford is hardly a trick. I would maybe say that a casino that utilizes visuals and sounds and other mental techniques might be "tricking" people, but I can't say the same for credit cards. All the information is there, in plain english, to allow people to use a credit card simply as a way to keep an electronic ledger, get an interest free loan until the auto pay date, earn some cash back, and have some purchase protection via the ability to do a chargeback. You can even set spending limits online. Similary, I wouldn't say a buy one get one free offer or 75% off sale sign is tricking anyone either. Assuming you've passed 4th grade, you're stupid if you're not calculating unit prices.
matwood 8y ago
Except in most cases, the transaction fee is already built into the price for everyone. Paying cash is worse for you.

whoopdedo 8y ago

You're still paying for credit card transaction fees indirectly when you use cash. Since retailers are prohibited from charging discounts for cash purchases then to cover the card fees they raise the price for everyone. Cash buyers end up subsidizing card users.

hopler 8y ago
In USA it is no longer legal to forbid cash discounts / CC surcharges. Still uncommon though.
- deleted 8y ago
  [deleted]
gbear605 8y ago
At least your money is often going to a local business rather than a big credit card company
0x445442 8y ago
The fees aren't the point. The point is, using something other than cash tends to trick people into spending more in the same way buy one get one free does.
- lotsofpulp 8y ago
  People being unable to control their impulse to buy something they can't afford is hardly a trick. I would maybe say that a casino that utilizes visuals and sounds and other mental techniques might be "tricking" people, but I can't say the same for credit cards. All the information is there, in plain english, to allow people to use a credit card simply as a way to keep an electronic ledger, get an interest free loan until the auto pay date, earn some cash back, and have some purchase protection via the ability to do a chargeback. You can even set spending limits online. Similary, I wouldn't say a buy one get one free offer or 75% off sale sign is tricking anyone either. Assuming you've passed 4th grade, you're stupid if you're not calculating unit prices.

matwood 8y ago

Except in most cases, the transaction fee is already built into the price for everyone. Paying cash is worse for you.