No, they don’t charge higher transaction fees in order to pay those reward rates, they just give up on making any profit from that and instead try to profit from charging interest. Which of course is disproportionately paid from people who cannot actually afford it.
Iirc, surcharging is only illegal in 4 states. However, theres a loop hole in thise states, giving a discount on cash purchases arent considered a surcharge…
They already make 2-3% on every purchase
That’s a good point - there are transaction fees that could support the business. And we even inflate those with cash back and other rewards
No, they don’t charge higher transaction fees in order to pay those reward rates, they just give up on making any profit from that and instead try to profit from charging interest. Which of course is disproportionately paid from people who cannot actually afford it.
Which is an insane return by itself if people use their cards for everything, as they do in the US.
No, we had a flat annual fee for usage. There was a fee for withdrawing cash but no making purchases.
The merchant is charged the fee, not you directly as the cardholder. It’s already figured into the price if they accept cards.
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Credit cards companies have a merchant fee, ussually around 2%.
It was illegal for vendors to charge a fee for card purchases, so if that was the case then they maybe just raised their prices.
Iirc, surcharging is only illegal in 4 states. However, theres a loop hole in thise states, giving a discount on cash purchases arent considered a surcharge…