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Restaurants like Starbucks do exactly this. You pre-buy Starbucks credit that you later use to pay for coffee. Starbucks benefits because they only incur trans
by runako 8y ago
Restaurants like Starbucks do exactly this. You pre-buy Starbucks credit that you later use to pay for coffee.
Starbucks benefits because they only incur transaction fees for every (say) $25 pre-paid block, instead of for every $3 coffee. Swipe fees decrease as a percentage of revenue.
They reward consumers via their loyalty program.
- jessaustin 8y agoThat makes sense, thank you.
- dragonwriter 8y ago> Starbucks benefits because they only incur transaction fees for every (say) $25 pre-paid block, instead of for every $3 coffee. Swipe fees decrease as a percentage of revenue. They also incur benefits because money in hand and earning returns today for goods and services that will (maybe) be provided in the future is better than money received only at the point of sale.