Comment by legitster
6 hours ago
I think I would push back on the idea that credit and debit cards represent a deadweight loss to the economy. Operating a cash business has its own expenses - theft risk (employee or otherwise), handling time, and (most importantly) you are limiting your customer base to only cash. There's a lot of reasons lots of small businesses are going card only.
For good or bad, a lot of studies have confirmed that cards have overwhelmingly increased consumer spending.
I think the far stronger case is that the industry has no actual incentive to fix the underlying fraud that they are charging merchants to fight. They have done a lot of work to institutionalize the problematic infrastructure and make it almost impossible for startups or outsiders to fix.
Nobody is claiming payment cards adds no value, that'd be absurd. But their cashback programs and other bullshit (see recent itch.io/Steam moral policing story) certainly adds no value.
It's one of the claims in the attached news articles.
The top comment here does, but it's stupid and off topic.
If I'm reading it correctly, the top comment is arguing that having electronic payments run by for-profit entities adds no value. Not that electronic payments are useless, rather that these should be a state-run service. Which is one way to solve this I guess (not that it will help moral policing stuff much, but at least no more robbing poor Paul to reward rich Peter).
> I think I would push back on the idea that credit and debit cards represent a deadweight loss to the economy
It’s the anticompetitive actions causing the deadweight loss, not the digital nature of transactions.
> For good or bad, a lot of studies have confirmed that cards have overwhelmingly increased consumer spending.
There is a lot of psychological awareness created when you have to pull a couple singles vs. a Benjamin out of your wallet vs tap card for all amounts.