[rellui]

I forgot where I read it but an article explained the way credit card companies hide how the fees have been transferred to the customers. The merchant takes the burden but they jack up the prices of the goods which hits the consumers.

The reward point systems of the credit cards work the same way. Merchants jack up the price of the goods to be part of the reward point system which in the end hits the customers. In fact, the people that don't get a credit card with reward points actually end up losing by not joining.

I thought it's interesting that everything in the end gets put on the customers. It's the price we pay for convenience. I just don't like the way it's hidden to make it look like we're not actually the ones paying for it.

[maxxxxx]

It reminds me a little of medical pricing. The real costs are hidden from the customer and things are intentionally convoluted. There are a lot of areas where we need more transparency.

[ArtDev]

When costs and prices are hidden, competition cannot happen and the market stops working.

[maxxxxx]

Businesses don't want working markets once their position has been established.

[SketchySeaBeast]

> I thought it's interesting that everything in the end gets put on the customers. It's the price we pay for convenience. I just don't like the way it's hidden to make it look like we're not actually the ones paying for it.

Where else would the cost go? Credit card costs, delivery costs, supply costs, advertising costs, the consumer always pays for it as they are the only one who are providing cash in any of these scenarios. I suppose the merchant could just eat the cost, but, assuming the markup isn't wild, that's a proposition that leads to a dead business.

[geofft]

The cost could go to a specific credit card fee paid by the customer only when they use credit cards, but the merchant agreements typically prohibit you from doing that. You're paying the price whether or not you're getting the convenience.

(I've seen a few small merchants tackle this by offering a cash discount as a subtraction from the regular price, for instance. But I'm not sure even that is contractually permitted.)

[CardFellow]

Cash discounts are legal in all states and permissible by merchant agreements.