[syvex]

After working with payment processing of credit, debit, EBT, and gift cards for the past few years, I have started using cash more.

For most transactions, a merchant is charged between 2-3% of the purchase price. This means that whatever you are buying could be 2-3% cheaper if cash were used instead. (However, for high-volume stores this may not be true since credit transactions take less time than getting change from cash.)

Furthermore, if someone steals your credit card number, you call them and have the charge removed. Does your credit card company take the loss with this? Not usually. The merchant that accepted the stolen card will pay. This in turn, makes the price of goods go up again.

These things take some toll on the overall economy. The real question becomes, how can we make cash transactions more efficient so that it improves commerce for individuals and improves the profits of businesses?

[mhb]

One way would be to get rid of any rules which prevent retailers from passing through the cost of credit card charges to credit card users in an obvious way. Like by saying that credit card transactions will cost 2-3% more than cash transactions. I think this is either discouraged or prohibited by credit card issuers.

[elai]

ATM/debit bank cards? Often only a flat .25 a transaction, PIN only, and you can't chargeback just like cash. Online transactions need a PIN interface although.