Quote:
Originally Posted by Acrossamerica
I wonder if you have any idea where that money "you make" comes from? Contrary to what a lot of young people think, it does not just happen. That 1-5% pay back is taken out of the merchants pocket in the form of CC fees.
Use a Debit card and they are charged one fee, use a straight CC card and it is a different amount, use the pay back cards and the fees jump up to cover the cost of the paybacks. And in addition to the fees there is a processing machine that must be bought and updated every few years and any merchant that has not invested in the new "Dip" card machines is now liable for any fraud on that card not the CC company or the bank.
So as you pat your self on the back for "earning" 1-5% on your purchases you are really paying for that and possibly a bit more to cover the aggravation factor of being in business and dealing with thousands of customers who "know" so much better how to run everyone else's business.
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I'll go one step further, the merchant generally can't absorb those fees and pass them along to the customer. So you pay your own bonus.