Credit cards cost even more than debits - you just pay a different way. The fee for using a credit card is 3% MINIMUM, and only a large retailer can get that rate. For small businesses it's more like 10%! That goes directly into the prices you pay.
The only reason more people aren't aware of this is that government has been in the pocket of the credit card companies for a long time - that's why it's illegal for the retailer to actually put the amount you're paying to Visa or Mastercard on the bill, where it belongs. Some have gotten around that by offering a "cash discount", but it's a legal grey area.
Credit card companies are the worst of finance industry, and that's really saying something.
There's overhead to maintaining a cash system too, of course, borne by the government that prints the cash (and polices counterfeiting, etc). But I really wonder how much extra we'll be paying in assorted "service charges" with every new electronic-cash scheme that comes along. If it's coming from banks and other financial empires, you can assume you're being bilked, because the only reason they ever have to offer a new service is to find a new way to skim your money.
People complain about paying taxes all the time; what I object to is bank charges. And the "take your business elsewhere" is ridiculous - they're all the same (even credit unions are only marginally better these days).
Related to this, Australia has recently introduced laws guaranteeing retailers the right to pass on credit card costs. Most retailers have been holding back on exercising this right, seeing what the competition does, but some big companies (such as QANTAS) are getting in on the act. eg. QANTAS has announced it will charge 1% extra when a credit card is used. One of the two dominant retail companies in Australia (Coles-Myer) is also said to be 'evaluating its options'.
Anyway, this sort of indicates that when the entire equation is looked at: cash handling costs vs. credit card costs, cash comes out cheaper for retailers (otherwise companies wouldn't be charging more for credit).
Banks (Score:1)
Shit, when banks take up more than half of the top 10 most profitable companies you know something is up.
Plus, how do they justify raising simple banking fees EVERY year? Debit, no thanks, I'll use my CC's which don't cost me a dime.
While I'm at it, I'd really like to stop writting checks. Be your own bank, stock your pillowcase!
Re:Banks (Score:5, Informative)
The only reason more people aren't aware of this is that government has been in the pocket of the credit card companies for a long time - that's why it's illegal for the retailer to actually put the amount you're paying to Visa or Mastercard on the bill, where it belongs. Some have gotten around that by offering a "cash discount", but it's a legal grey area.
Credit card companies are the worst of finance industry, and that's really saying something.
There's overhead to maintaining a cash system too, of course, borne by the government that prints the cash (and polices counterfeiting, etc). But I really wonder how much extra we'll be paying in assorted "service charges" with every new electronic-cash scheme that comes along. If it's coming from banks and other financial empires, you can assume you're being bilked, because the only reason they ever have to offer a new service is to find a new way to skim your money.
People complain about paying taxes all the time; what I object to is bank charges. And the "take your business elsewhere" is ridiculous - they're all the same (even credit unions are only marginally better these days).
Re:Banks (Score:1)
Anyway, this sort of indicates that when the entire equation is looked at: cash handling costs vs. credit card costs, cash comes out cheaper for retailers (otherwise companies wouldn't be charging more for credit).