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The consumer pays higher prices (since the merchant charges higher prices due to transaction costs), which is passed onto the network+banks via the merchant. T
by acchow 2y ago
The consumer pays higher prices (since the merchant charges higher prices due to transaction costs), which is passed onto the network+banks via the merchant.
There’s an analogous situation with tariffs - it seems the manufacturer pays the cost of the tariffs since it is coming out of their bank accounts. But it’s actually consumers paying the tariffs.
- jack_pp 2y agoYou're right, then we should move to have different prices which show clearly the fees, I suspect a lot more people would go back to cash. The problem is the govt wants to get rid of cash all together so I guess this will never happen
- sgerenser 2y agoNot really true, depends on the marginal elasticity of demand whether the consumer vs. the retailer pays and how much. My wife owns a retail store, and she loves Amex customers, they’re usually the highest spenders and easiest to upsell. Having a surcharge for credit cards or Amex in particular would be counterproductive.
- eru 2y agoWell, and I assume those upsells probably have a higher margin for her. Ie effectively she's charging those Amex guys more.