| ▲ | Tor3 7 days ago | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The incentive for merchants to accept cards for payment is that it'll increase number of sales. And it does. In principle this should even out over all sales.. but cards do make it easier for consumers do purchase stuff, and I'm absolutely sure that I personally spend money way easier with a card than without (not that I spend more than I make, mind). The total number of sales go up. I haven't used cash in my home country for the last two decades, at least. I mean, CC works even on parking meters when paying half a dollar (equivalent) for a few minutes of parking, and I can use a card in flea markets and even some garage sales. Oh, I forgot: A lot of shops, restaurants, and other establishments have stopped accepting cash, even if it's illegal to do so (legal tender etc). That's because handling cash costs them MORE than handling credit/debit cards. In other words: It appears that using cards LOWER the costs for the merchant, not the other way around. EditAdd: I presume a lot of the cost saving is that paying by card is 100% electronic, just tap the card (add the pin code if it's expensive enough), and the transaction goes directly into the shop's account. With cash it's way more cumbersome. Way, way more. (Mind, there's no such thing as signing by hand anymore. If there were paperworks involved it would be different. But there aren't any, not in Europe and not in Japan anymore either) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▲ | camillomiller 6 days ago | parent | next [-] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One thing to consider: cards solve the issue of employees stealing, which is surprisingly common from what I’ve heard especially in businesses with high workers turnover, such as seasonal bars and restaurants. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| ▲ | rprend 6 days ago | parent | prev | next [-] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
> The incentive for merchants to accept cards for payment is that it'll increase number of sales this is something that ive thought about a lot, because while it is strictly true in the short run it may not be in the long run. For example, i don't have any debt, but i use a credit card for everything. Why? It's become my default to use it. I wonder if the same thing will happen with BNPL (Klarna, Afterpay). These are higher fee than credit cards (5-7%) because they bring in new customers. But, like with credit cards, savvy customers are starting to see BNPL as interest free loans (aka free money on the float, even better than credit card rewards), and it's possible that they become the new consumer results. Merchants are left holding the bag of paying 6% processing fees for everyone, even people who can afford it. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ▲ | ceejayoz 7 days ago | parent | prev [-] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
> A lot of shops, restaurants, and other establishments have stopped accepting cash, even if it's illegal to do so (legal tender etc). No. This is a misunderstanding of legal tender. https://www.federalreserve.gov/faqs/currency_12772.htm "There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise." Legal tender only applies to debts. When you go to buy a t-shirt at Target or a burger at McDonalds, you don't owe a debt, and they aren't a creditor. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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