Comment: Now banks do a lot of evil

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Now banks do a lot of evil

Now banks do a lot of evil things but this isn't part of it.

Credit cards are actually a service and as a service have a cost involved that the banks may charge for. The entire arrangement of how the fee is set up is a private agreement. Nobody forced it as far as I know. I am just old enough to remember a time where many businesses didn't take credit cards. This didn't change because businesses thought it wasn't in their best interests. They must have felt they could make it up somehow and did otherwise credit cards would have grown from where they were in the 1970s and prior.

I also doubt that cash customers pay more. Yes I understand what some gas stations are doing, they think they can make more sales and more profit that way, so be it. The way the 'cash' and 'credit' prices come and go in that business tells me it is more of gimmick than anything. It works for awhile to generate more business and profits and then it doesn't so they drop it. Then the cycle repeats some time later.

Simply put, if businesses could charge more, they would just charge more and put it in their pockets. What they are doing by accepting credit cards is making it easier for their customers to spend more and reduce their transaction costs. Cash has transaction costs too. So do checks. I'll wager that the banks have set their fees to be inline with the costs businesses have with regard to other transactions.