I think the problem is that merchants hate the card networks and consumers generally like them and there are a lot more consumers than merchants. If you are a politician, which block of voters are you going to side with?

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7 hours ago | parent | next [-]

[deleted]

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carlosjobim 6 hours ago | parent | prev | next [-]

Merchants don't hate the card networks. That's a minority in my experience, who are penny wise and pound foolish.

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sandworm101 7 hours ago | parent | prev [-]

They like the card networks because they are lured by point schemes, effectively money charged to the merchants and then shared back to cardholders. Consumers would flip in a heartbeat if shops were allowed to offer discounts to those not using credit cards.

I used to by all my PC parts from a shop that had a 5% discount for cash purchases. It was the sort of shop that was just a counter with all the merch hidden in the back. I don't know how they kept the CC companies from knowing but maybe 40% of their business was cash purchases (circa 2019).

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steveklabnik 7 hours ago | parent | next [-]

> Consumers would flip in a heartbeat if shops were allowed to offer discounts to those not using credit cards.

We must be very different consumers.

Also, many places already do effectively this, they charge a surcharge for using a card.

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graemep 7 hours ago | parent | next [-]

Not in the UK, or the EU, as its actually illegal (as in against the law, as well as the contract with the provider).

	▲	steveklabnik 7 hours ago \| parent [-]
		> as well as the contract with the provider It used to be here in the US, but there was enough violations that they stopped putting it in the terms. But, looking into this, it looks like some states have made it illegal. I'm curious how well that's enforced.

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ImPostingOnHN 7 hours ago | parent | prev [-]

Yeah, there are folks who use more card benefits than they pay in annual fees, to whom this might not be appealing.

For those on the other side of the balance, maybe it would be.

Either way, I can't imagine many shops doing it, even if the economics makes sense. They'd rather the immediate and direct pad to the bottom line.

	▲	steveklabnik 6 hours ago \| parent [-]
		It's the same reason that I don't use bitcoin for large purchases: I want the ability to have disputes handled if and when something goes awry. With cash, I have no recourse.

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jtbayly 7 hours ago | parent | prev [-]

CC companies allow this surcharge/discount for CC/cash now. Have for several years. I think it was caused by a class action suit.