Viewing post #1337695 by Newyorkrita

drdawg said:In reality, businesses have to consider expenses when pricing their items/services. On the other hand, our federal (and often state) government doesn't worry about trivial things like overhead. Credit card companies generally charge a 3-5% fee when their card is used at a business (my tropical plants business as well) and that business simply passes the"cost" on to their customers in their pricing. Thus, the 1% cash-back partially makes up for our increased cost when we purchase something. But hey, I use my VISA and somewhat my AMX card to get that 1% back. Every little bit helps.

Yes, the merchant pays on all transactions. But the consumer only if you don't pay up the entire credit card bill. I use my credit card for convenience and barring a major emergency don't buy more than I have each month that I can pay off.