Re:New York City considering legislation to ban cashless ret...
by Someone1234 on Friday March 08, 2019 @09:51AM
(#19337918)
I can see NYC's point on this one.
The problem with credit cards isn't the concept (which I like) it is that they're rent-seekers that seem to want an ever increasing slice of the pie. We currently pay 2.5% of most purchases to these companies, with plans to increase that further.
The problem is that their costs should be falling, since their volumes have increased massively but instead of passing on those cost reductions they're trying to leverage their duopoly harder.
Cash is the only leverage society has to keep credit card processing fees low. If it disappears and there remains an uncompetitive market, we'll all suffer as a result.
The problem with credit cards isn't the concept (which I like) it is that they're rent-seekers that seem to want an ever increasing slice of the pie. We currently pay 2.5% of most purchases to these companies, with plans to increase that further.
The problem is that their costs should be falling, since their volumes have increased massively but instead of passing on those cost reductions they're trying to leverage their duopoly harder.
Cash is the only leverage society has to keep credit card processing fees low. If it disappears and there remains an uncompetitive market, we'll all suffer as a result.