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I'm against this practice because of two things: First, you are selling a little bit of your privacy, the bank you know all your purchase patterns and even tho
by the_jpg 8y ago
I'm against this practice because of two things:
First, you are selling a little bit of your privacy, the bank you know all your purchase patterns and even though this seems not to be abused it creates a precedent that I do not like.
Secondly, every time that you buy things with your credit card the bank change the business a small fee, so in a way you are making the 'rich' more richer and the 'poor' more poorer.
I believe that these two thing will make me use cash forever.
- ElatedOwl 8y agoCash comes with a fee; armored trucks, safes, money-handling mistakes, etc.
- rland 8y agoDon't have a source on hand, but I remember when I looked into this that that extra spending on cash that you mention is dwarfed by the ~2% charged by e-payment processing.
- deleted 8y ago[deleted]
- billfruit 8y agoIn some countries there are no additional fees if you pay with credit card.
- ska 8y agoReally? How would that even work? Somebody has to pay the transaction costs...
- billfruit 8y agoMay be the merchant absorbs them, may be the bank does not charge them..
- phlo 8y agoI'm not aware of any countries where no fees at all would be levied, but to provide two examples from Europe: - In the EU, interchange rates are limited to 0.3% [1] for credit card transactions at physical terminals ("card present transactions"). That's not free, but it's an order of magnitude below US levels. Caps for other payment methods (card not present transactions and transactions made with debit cards) range from 0.2 to 1.5%. - Some banks, or groups of banks, operate their own schemes (i.e. payment processing networks competing with Visa and Mastercard), and generally achieve lower fees. See [2] for one example where the price per transaction starts at $0.23 and goes down for transactions below $10, and for customers processing more than 10k transactions per year. [1] http://europa.eu/rapid/press-release_IP-18-6655_en.htm http://europa.eu/rapid/press-release_IP-18-6655_en.htm [2] https://www.postfinance.ch/en/business/products/accounts-receivable-solutions/eft-pos.html https://www.postfinance.ch/en/business/products/accounts-rec...
- dalore 8y agoNo additional fees, but they get around that by offering discount for cash.
- billfruit 8y agoWhat I see in some countries is same price for cash or card.
- dalore 8y agoVisa/Mastercard have a rule that you can't charge extra for using a credit card. If you find a business doing so you can report them and they will get the credit card facilities yanked. But you can always offer a discount for cash. So some places do this to get around that rule. If you're buying in cash you can try ask for a discount. If you're not asking you will get charged the same price they can't offer it out of the blue.
- maccard 8y ago> every time that you buy things with your credit card the bank change the business a small fee, so in a way you are making the 'rich' more richer and the 'poor' more poorer. I used to work for a small "mom n pop" style computer store, and did the cash drops most days. My understanding was that the cash handling fees were roughly the same as the card fees. Arguably card processing was cheaper for us,and less error prone (card machine hooked up directly to the till means I won't accidentally give the wrong change when I'm hungover, for example. ) Most of the time you see steep charges for paying by card (e.g. taxis) theyre related to tax avoidance - if you pay cash thryll just pocket it and not log it as a trip, whereas if there's a card payment there's a paper trail.