3 ms·
> This is way too reductive. In the US, credit cards are complicated. For instance, I get about 2.5% of every purchase back, either in cash or kind. Yes, the me
by BeetleB 2y ago
> This is way too reductive. In the US, credit cards are complicated. For instance, I get about 2.5% of every purchase back, either in cash or kind. Yes, the merchant pays 4%, and VISA/matercard take a bit, and my issuing bank takes a bit, but calling that "extracting rents" feels like pure rhetoric.
You just described "extracting rents".
For people like me who treat a credit card as a debit card, I see no reason for vendors to pay that "tax" if there are almost free alternatives. I'm ok losing the cashback which you and I are paying for anyway.
- frumper 2y agoAlmost no retailers offer a discount for using cash or a debit card. You're paying the retailer either way. Whether they pay a transaction fee or pocket it isn't much of a difference to you.
- BeetleB 2y agoIsn't that the point of the lawsuit - that because they have a monopoly there's a floor on the price that consumers see?
- cubefox 2y agoRetailers compete with each other. In the long run, credit card fees will lead to higher prices, and (basically non-existent) FedNow fees to lower prices.
- frumper 2y agoI don’t disagree, but I also don’t trust that retailers will pass on the savings. Many higher priced items sell based on MSRP anyway.
- BeetleB 2y agoRetailers don't "pass on the savings". One retailer will lower the price if they don't have to pay as high a Visa fee - to attract more customers. Other retailers will then follow suit. Free shipping wasn't much of a thing until one retailer decided to make it one :-)
- Ekaros 2y agoOr they will increase prices later than they would have. Which I think is most realistic scenario that will happen if cap is set. Prices don't go down, but they will go up slightly less over next few years.
- vaindil 2y agoThat's changing in my corner of the US (suburbs of a large city). Most of the local businesses I've gone to in the past couple of months are adding a 3% surcharge if you pay with a credit card. Haven't seen a larger company do this, but restaurants, coffee shops, and some other local stores are doing this now.
- ac29 2y ago>For people like me who treat a credit card as a debit card What do you mean here? Do you mean you overpay your credit card so there is always a negative balance? Or, do you mean you treat your credit card like a charge card, and pay it off every month?
- BeetleB 2y agoThe latter. As in, I don't actually need credit that lasts longer than a month.