Why are credit card rates so high?

Re:Why are credit card rates so high? by 20after4 on Tuesday April 01, 2025 @06:54PM (#43552138)

That cash back is basically a scam. It's paid for by the credit card processing fees - fees which are charged to merchants and ultimately get passed on to the customer in the form of higher prices. Some merchants even tack on explicit ~$3 transaction fee for credit card purchases, to cover transaction costs.

So the cash back is just a partial refund on your credit card processing fees.

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Re:Why are credit card rates so high? by sparker72678 on Tuesday April 01, 2025 @07:04PM (#43552218)

But once the scam has permeated the system, it's to your advantage to participate, because you pay either way.

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Re:Why are credit card rates so high? by scarface_74 on Tuesday April 01, 2025 @07:03PM (#43552208)

Every study shows that people spend more money when using credit cards than when they pay cash. It helps the merchant.

Cash also has cost - employee theft, risk of getting robbed while taking it to the bank, it takes more time to handle, etc.

If I had a business, I would not accept cash at all.

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