4 ms·
Why? If the merchant is paying an extra 1-2% for your purchase in cc transaction fees, why should they be expected to eat the cost? Why should your service be
by Pxtl 3y ago
Why? If the merchant is paying an extra 1-2% for your purchase in cc transaction fees, why should they be expected to eat the cost? Why should your service be subsidized by people whose transactions don't have that overhead?
- cashmonster 3y agoThey are paying even more to manage cash but don’t have a separate fee for it. Why should credit card users subsidize that? (Personally I think it’s fine to charge any which way you want as long as your terms are clear. But I think this answer makes clear it’s not so obvious as you suggest?)
- sumedh 3y agoWith cash, merchants can show less income and then pay less tax.
- Pxtl 3y agoBank of Canada studied it and found that credit costs were over double the cash costs. Debit is the lowest-cost option for merchants. https://www.bankofcanada.ca/wp-content/uploads/2017/11/boc-review-autumn2017-fung.pdf https://www.bankofcanada.ca/wp-content/uploads/2017/11/boc-r...