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Basically, the credit card networks are bribing customers to become complicit in extorting a sales tax from merchants.
by konschubert 7y ago
Basically, the credit card networks are bribing customers to become complicit in extorting a sales tax from merchants.
- bduerst 7y agoOr sharing kickbacks to consumers to increase their buying power, which isn't extortion or illegal.
- basch 7y agoIf their processing service is cheaper and better than cash services (Brinks etc), then the 2% cash back is more like paying customers for the aggregate data collection. Visa gets paid to replace cash processing, and pays out for consumers providing shopping data.
- lotsofpulp 7y agoIt also has the effect of forcing accurate payment of taxes due to an an indisputable record being created of sales: https://www.youtube.com/watch?v=_Gsz7Gu6agA https://www.youtube.com/watch?v=_Gsz7Gu6agA