Comment by dylan604
9 months ago
> just because AMEX charges merchants more.
There are many places that do not even accept AmEx specifically because of their fees. Charging more based on card use has always been a thing until the card companies used their cartel like persuasion to not allow that. However, I'm starting to see stores offer different prices for cash/debit than credit. I thought I remembered this being made allowed again, but it's early still.
You as a user feel like you should be able to buy whatever whenever with whatever mode of payment. That's very convenient for you even though you're the one that has decided to use that particular mode of payment even though you know your mode of payment is an absolute pain in the arse for the merchant. Not having you as a customer is a perfectly valid point of view from the merchant.
I'm actually OK with businesses deciding to not take a certain kind of credit card or them going cash only. Fine, go ahead and lose me as a customer. Just don't nickel and dime me because you're too cheap and stubborn to accept the tiny gross margin difference between one card and an another.
Hidden fees remove any consumer-side pressure on credit cards to lower their costs.
It also creates perverse incentives for cards to pass part of the merchant fees back to the consumer as rewards or even cash. Here in the US, 2-3% cash back is typical, driving consumers to prefer credit over other payment methods.
Meanwhile, merchants are forced to bake the fees into the retail price, causing the paradox that those who pay upfront end up spending more for the same goods.
Think of it as a discount in the other direction.