• Midnight Wolf@lemmy.world
    link
    fedilink
    English
    arrow-up
    13
    arrow-down
    2
    ·
    4 days ago

    card provider will withdraw

    Dubious, as I regularly see gas stations with separate cash vs card prices. I’ve seen small businesses offer discounts for cash, too. And it’s not like visa is going to stop processing cards because walmart started offering cash prices. It’s just scare tactics. And for big companies, people who pay in cash offer bigger profit margins, so it’s not like they are incentivized to help the situation.

    • keckbug@lemmy.world
      link
      fedilink
      arrow-up
      2
      ·
      edit-2
      4 days ago

      Actually true, but outdated. There was a massive decade long $30b legal fight that eliminated credit card network’s “anti-steering” provisions. Those were contractual terms that retailers signed that prohibited them from offering different prices for cash and card. Some retailers have responded by offering different prices, or otherwise adding a processing fee to card transactions as a result of that settlement.

        • keckbug@lemmy.world
          link
          fedilink
          arrow-up
          2
          ·
          edit-2
          4 days ago

          Obviously it varies from business to business. Some may not want the hassle, some may see consumer sentiment against fees and not feel it’s worth the impact. Some are content to merely leave prices 3% (or more) higher.

          Ultimately, very few businesses price things based on their costs…instead they price based on what they think people are willing to pay, or what the market will bear.

          It’s also worth considering, at the scales of many of these businesses, accepting and handling cash is very much not a free option. If I’m a supermarket chain, I pay a card company a few percent and maintain my payment terminals and I magically get my income deposited daily directly in my preferred bank account. I’ve got some risk with stolen cards and chargebacks, but the big Chip Card and Mobile Wallet rollouts have dramatically limited my exposure to that liability.
          With cash I have a substantial cost to handle, collect, count, and deposit at each location. I have concerns about counting accuracy, interval and external theft, counterfeit currency, purchasing change from my local bank (which typically has a fee assessed for businesses), etc.