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Shoppers that use cash/debt are are subsidizing Americans’ cc reward points by $30billion
Posted on 6/3/26 at 1:26 pm
Posted on 6/3/26 at 1:26 pm
quote:
The total credit and debit card fees paid by merchants to card processors, led by Visa and Mastercard, have increased 70% since 2019 to $198 billion in 2025, according to data from the Nilson Report. The rise has been fueled by an overall increase in consumer spending, a shrinking number of people using cash and an uptick in fees charged by credit card companies that largely go toward funding rewards programs.
The National Retail Federation, an industry organization pushing for legislation to reduce swipe fees, estimates those fees add more than $1,200 a year in higher prices for the average household.
quote:
This amounts to a wealth transfer of about $30 billion a year from people who pay with cash and debit cards to people who pay with credit cards, a Harvard Business School study estimated this year. That’s equivalent to raising the average sales tax rate by around 16% for people who pay in cash.
amounts to an extra salex tax
11
Posted on 6/3/26 at 1:29 pm to TigerintheNO
Imagine still using cash in 2026 
Posted on 6/3/26 at 1:29 pm to TigerintheNO
Sounds like people still paying with cash/debit haven't caught on and thats thier problem
Posted on 6/3/26 at 1:29 pm to TigerintheNO
#4 is why I got a CC with high rewards, use it daily, then pay it in full every month.
Posted on 6/3/26 at 1:30 pm to TigerintheNO
I remember when it used to be extremely rare to ever see an establishment add a surcharge when using a credit card. Hell, I think I even started a thread here a few years ago the first time I saw it on the menu at a semi-upscale kinda place, thinking how cheesy that seemed.
Now, it's hard to find a place that DOESN'T do that.
Now, it's hard to find a place that DOESN'T do that.
Posted on 6/3/26 at 1:30 pm to Pelican fan99
quote:
Imagine still using cash in 2026
Lots of minorities/poor folks do.
Posted on 6/3/26 at 1:31 pm to TigerintheNO
Yes. But if you could Thanos snap all credit cards out of existence, the retailers would still maintain the current prices and pocket the profits. They are not in the business of lowering prices when their operating costs lower. Is the issue posted a problem? Yes. Is there a solution? No.
Posted on 6/3/26 at 1:38 pm to SludgeFactory
quote:
4 is why I got a CC with high rewards, use it daily, then pay it in full every month.
That’s the key. Those that let the balance build up with high interest rates each month aren’t being subsidized by anyone.
They are paying the higher price at the register, as well as paying a much higher price on the back end paying off that debt.
Posted on 6/3/26 at 1:41 pm to Pelican fan99
With my side lawn care business that I do not pay any taxes on I use the cash for eating out and groceries. What is there to laugh about on that?
Posted on 6/3/26 at 1:42 pm to Ghost of Colby
Visa/MC make ONLY $198 billion per year on fees? Wow. Thought the number would be in the trillions. Imagine getting a 2-3% cut of almost every transaction in the country every single day. That's mafia level stuff, wetting their beak on every transaction everywhere.
Posted on 6/3/26 at 1:47 pm to TigerintheNO
Some places offer a discount if you pay with cash/debit card. Is that captured in this math? If I get a 3% surcharge for using my card, then I’ll use cash/card.
Posted on 6/3/26 at 1:47 pm to Pelican fan99
quote:
Imagine still using cash in 2026
I do when I don't want wife know where I spent it. (It's always on flowers, I'm lying).
But she knows when I swipe the debit getting some liquor before I get home.
Posted on 6/3/26 at 1:49 pm to Y.A. Tittle
quote:
I remember when it used to be extremely rare to ever see an establishment add a surcharge when using a credit card. Hell, I think I even started a thread here a few years ago the first time I saw it on the menu at a semi-upscale kinda place, thinking how cheesy that seemed.
Now, it's hard to find a place that DOESN'T do that.
I am so against this, and my payment modeling has gone from like 10% CC/debit pre-Covid to probably 65-70% post-covid. It's a convenience that I pay for.
Posted on 6/3/26 at 1:51 pm to TigerintheNO
quote:
Shoppers that use cash/debt are are subsidizing Americans’ cc reward points by $30billion
People make poor financial decisions … not shocking
Posted on 6/3/26 at 1:51 pm to Y.A. Tittle
quote:
I remember when it used to be extremely rare to ever see an establishment add a surcharge when using a credit card.
It all changed with Dodd-Frank (2010), which is why you now see minimum dollar amounts to use any kind of card, too. Sure looks like government action fixed the market.
quote:
The Dodd-Frank Act includes the Durbin Amendment, which caps debit card swipe fees at 21 cents per transaction plus a small percentage of the transaction amount for large banks. This regulation aims to reduce costs for merchants and increase competition in the payment processing market.
Posted on 6/3/26 at 1:51 pm to SludgeFactory
quote:
#4 is why I got a CC with high rewards, use it daily, then pay it in full every month.
Correct.
Posted on 6/3/26 at 1:52 pm to Pelican fan99
quote:
Imagine still using cash in 2026
Come to Germany and you will find most prefer paying with bar. There's an ice cream shop in our mall that doesn't accept cards. Still many taxis that don't accept cards.
This post was edited on 6/3/26 at 1:54 pm
Posted on 6/3/26 at 1:54 pm to SoDakHawk
quote:
Imagine getting a 2-3% cut of almost every transaction in the country every single day.
It's actually not this high for the larger retailers. I would be surprised if companies like Walmart, Target, Amazon are paying more than 1 - 1.5%
Posted on 6/3/26 at 1:56 pm to Pelican fan99
Never use a card for duct tape, gloves, ski mask or chloroform. Just friendly advice.
Posted on 6/3/26 at 1:56 pm to Pelican fan99
quote:
Imagine still using cash in 2026
i try to use cash as much as possible...imagine people having unpaid cc balances every month
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