> I get 1.5% back on all my credit card purchases But that money has to come from somewhere, and that's the 2% credit card fee (can be a bit less, can be a lot

> I get 1.5% back on all my credit card purchases But that money has to come from somewhere, and that's the 2% credit card fee (can be a bit less, can be a lot more) paid by the merchant. And the merchant needs to make a profit, so he pays these fees by raising his prices 2%. If the cost of the transaction would appear on your bill, it would become obvious that you are not getting any "cash back". The perverse part is that the people not using credit cards are punished because they usually pay the same price.