Also, CC companies give cash back and other perks to encourage people to use credit everywhere If the CC firms take 3% in fees, and give 1-2% back to the custo

Also, CC companies give cash back and other perks to encourage people to use credit everywhere If the CC firms take 3% in fees, and give 1-2% back to the customer, why would anyone pay in cash? It’s free money. it’s pretty easy to see this is rent seeking behavior and you can’t blame small shops for not playing that game. It’s not enough to take interest from the consumer, they have to squeeze the businesses too.