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That cash back is basically a scam. It's paid for by the credit card processing fees - fees which are charged to merchants and ultimately get passed on to the
by 20after4 2y ago
That cash back is basically a scam. It's paid for by the credit card processing fees - fees which are charged to merchants and ultimately get passed on to the customer in the form of higher prices. Some merchants even tack on explicit ~$3 transaction fee for credit card purchases, to cover transaction costs.
So the cash back is just a partial refund on your credit card processing fees.
- scarface_74 2y agoEvery study shows that people spend more money when using credit cards than when they pay cash. It helps the merchant. Cash also has cost - employee theft, risk of getting robbed while taking it to the bank, it takes more time to handle, etc. If I had a business, I would not accept cash at all.
- sparker72678 2y agoBut once the scam has permeated the system, it's to your advantage to participate, because you pay either way.