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Comments

Paul

I knew that the credit card companies took a fee for each transaction but I didn't realize that it varied depending on the type of card.

Of course since you can't charge explicitly more for credit transactions you probably need to raise prices overall to cover those additional costs and thus penalize anyone using good old fashioned cash.

Benn

What happens if you sell merchandise with the price printed on it - like books or magazines?

That's not doable.

carl

i see your irritation and am no fan of the predatory practices of credit card companies...but you didn't mention the benefit to merchants in that people are generally likely to spend more on a credit card than with cash, or even a check...for instance, it allows people w/o cash in their pocket to make that impulse buy w/o having to go to an atm...in fact it's common pennysaver tip for people to switch to cash to slow down their spending...

Benn

Carl - I didn't mention the "benefit" to merchants because I thought that part was obvious. Merchants are business people - if there was no perceived benefit there would be no reason for anyone to accept credit cards.

However, I thought some people might be interested in who pays for their frequent flyer miles - cuz the advertising makes it seem like it's the credit card companies when it's not - it's merchants who have no choice in the matter.

It's actually better for everyone involved if people just use their ATM cards - but people are under this misconception that they get charged a 50 cents - 2.00 fee everytime they use their ATM cards for purchases.

I have accounts with 3 different banks and I am never charged a fee for using my ATM card for purchases - only for cash withdrawls.

But, really, I can't think of any reason why a majority of consumers would care either way. I just felt like pointing it out because it's not something I think the average consumer realizes (at least based on the reactions to friends when I point that out to them).

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