Why am I paying for your credit?


So, for a multitude of reasons, I pretty much live in a cash economy.

And I wonder…why do I have to pay for everyone elses credit?

Let’s be clear- accepting credit and debit cards is a major expense to retailers. While the numbers are hard to pin down due to a variety of factors, we are talking probably 20-30 cents for every transaction, plus a fee of 2%-5% of each transaction. Plus considerable cost for the hardware and software to accept such transactions.

In other words, in paying cash, I am paying a several percent tax subsidizing  those who use debit and especially credit cards.

And to further add to the frustration of it all- wealthier americans, those who get credit cards with rewards, or American Express cards- cost retailers the highest fees- which even those who use regular cards end up subsidizing.

I’m sure we’ve all seen some gas stations that offer lower prices for cash then cards. But this is pretty much the only industry where it is somewhat common, and it’s still far from the norm.

Just one more example of how our society is stacked against those who struggle to get by every day. Or who have made a conscious decision to not enrich the financial industry for no good reason.

Maybe that’s why stories such as Robin Hood are such classics- because it’s a mirror image of our own world- where it’s rob from the poor and give to the rich.

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About drugsandotherthings

I am a criminal. Because I have used cannabis and psychedelics extensively. I have tried many other drugs, but never cared for the uppers, downers, or dissociatives. I love craft beer, and absinthe, but don't care much for alcohols effects- which quite frankly, are boring and dangerous. Science is my religion. I am in my 40's, and have travelled extensively. And often forced myself outside of my confort zone. I am employed, a respected member of my communtiy, an animal lover, an environmentalist, a political junkie, and the realities I have experienced continue to push me further to the left of the political spectrum.
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5 Responses to Why am I paying for your credit?

  1. Barneysday says:

    I do a lot with cash also, although not exclusively. When I do a larger cash purchase, I usually ask for a cash discount. No harm in asking, and a surprising number of supplier go along with it.

  2. List of X says:

    A place that takes cash and credit cards can lose all the cash it took in a day during a robbery, but not the money it took in from the credit cards. But then that place has to be robbed every couple of months to justify the 2% transaction fees.

    • True enough. But retailers can also be “robbed” by stolen or skimmedhacked and duplicated cards.
      Then there’s the pesky issue, which we see all too much of recently, of the retailers being hacked themselves- exposing hundreds of thousands or even millions of customers data. A cost that can run into the billions (and yep, get’s passed pack to us consumers).

  3. Lou says:

    Great point on this false-fake economy based on imaginary numbers.

  4. Robin Hood. Good point. We’ve lost our moral compass and it bears out in the haves and have nots and the disappearance of the middle class. A frightening thing and very real.

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