Posted by s.crum on April 04, 2011 at 10:05:53 from (12.75.112.106):
In Reply to: Re: OT- debit cards posted by Russ from MN on April 04, 2011 at 06:48:51:
Most people don't understand the merchant side of credit cards. The merchant pays a "discount rate" or surcharge on the amount of each transaction, this is usually 1.5 to 3%. The merchant has the choice to take the hit or pass the cost along, most merchants just price their goods accordingly and everybody pays the inflated price. At least the gas stations give you an option. Most amusing was Discover card. Their wonderful "5% cash back"was a double edge sword, Discover's discount rate was 8% at one point (3% for them 5% for the customer) so the merchants that did accept Discover adjusted pricing accordingly, others just refused to take Discover. Discover was originally part of the Sears financial network. So in short everybody can tag at least 3% worth of higher prices on the convenience of plastic.
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