Comment by verst

5 hours ago

The vendor pays the 3% not you (through increasingly vendors try to charge this fee to you as well). If you as the consumer had to pay 3% extra every time, do you still agree?

8 comments

verst

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kuratkull  5 hours ago

Where do you think the vendor gets the 3% to pay the network?

If I bake cakes to sell them, and have to pay 3% to a network for each purchase, then that 3% is in the price of the cakes.

  • DaSHacka  5 hours ago

    That's if they pass on the cost to the consumer. Some businesses charge the same amount whether paying cash or card, meaning paying with a card is ""free"", or at least not "penalized" over cash.

    • kuratkull  2 hours ago

      It really means that the cash payers are subsidizing the card payers, b/c the cash payers don't get the cake for cheaper.

      I, as a cake seller have a cost i need to pay to the network every month, from my total revenue it's some percentage (depending on ratio of cash vs card). I obviously add that percentage to my cake prices to make up for that. Both cash and card payers pay the same amount for the cake, thus they share the price hike equally.

  • scoot  5 hours ago

    I can't reply to DaSHacka, but just to point outat least in this country, merchants have to pay to deposit cash. Not to mention the additional cost on their side of handling it, higher insurance cost, etc. etc. Cash isn't free of transaction fees/

SomeUserName432  5 hours ago

> The vendor pays the 3% not you

In Brazil, you'll typically get a "10% discount" when not paying by credit card.

Eg, it's very clearly pushed unto the consumer. I assume some law says they cannot charge more for it, so they got a default price, but always advertise a lower price with a small text "if paid via pix"

  • rowls66  4 hours ago

    Wow, 10% is way more than any interchange. So I suppose it a 10% discount because the cash goes right into the owners pocket, and is never taxed. I do wonder to what extent small business complaining about card interchange, are just small businesses complaining that business was so much better when many cash sales were never reported as revenue and never taxed.