• 7 Posts
  • 149 Comments
Joined 6 months ago
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Cake day: January 8th, 2024

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  • We are talking about businesses, right? They want to maximize profits, not giving money away for free… One dollar given away for free is one dollar less for the share holders. And for them, that’s pretty much the worst case.

    The credit card company gives you 5% money.

    Now, the credit card company has a problem. It loses money.

    The credit card company has an idea: Why not making the real customer (the shop) pay more? Prices for shops to use the payment method rise now.

    Now, the shop has a problem. It’s losing money and they think: What can we do? They rise the prices of the items they are selling. And who pays the higher prices in the end? You. And you think, you made a good deal.


  • Yeah, I have a credit card that pays me back 5% cash on grocery store purchases. It would be stupid NOT to use it

    Groceries + free money.

    I’m reading this as a European and have questions… We all know that there is non free money. So, what’s the business model? Making you use the card more by giving you “free” money and making the shops pay more to use the payment service, so that the shops then increase the prices, so that you pay the same as before (considering increased prices and cashback), but are now using the payment system a lot more?