[umvi]

> Except we used our cards to make $3,624 in spendable cash last year, all while paying zero in interest — because we paid the cards off in full each month.

Yeah except the merchants probably marked up their prices 4% to cover card processing fees so really we are just paying more for goods than we otherwise would have with cash and the card company is giving us a tiny kickback.

Let's not pretend credit card kickbacks are free money... The card companies are glutting themselves on merchant fees and we are all paying the price in the form of costlier goods in exchange for a small kickback.

[MattGaiser]

If everyone used cash, maybe, but since that isn't happening, those who don't use credit cards are paying for those who do.

[cowpig]

I think both of these statements are true

[ghaff]

However, handling cash is not free. Now, most places still have to handle cash but it's a whole lot less than they would have to otherwise.

[Nasrudith]

Some cities had an issue to even have to ban in person businesses from banning cash transactionss. Given the costs of cash handling taken for granted bizzarely it is possible that being charged a fee where there was none before will save merchants and consumers money net even while the credit card companies make money. Cash counting machines, time spent tracking physical money, safes, and armored car transports all cost money. The wire transfers of money and credit are a real service of real value.

[leetcrew]

100% of the rewards don't have to come from transaction fees. they could also be funded in part from other customers' interest payments. I notice that the best rewards cards often have very high interest rates. this is also not a great state of affairs; you are essentially taking advantage (through an intermediary) of other people who can't manage their finances. but it's not quite paying into your right pocket by picking from your left.

[larryludwig]

As the author of this article, this isn't true. some comes from the merchant fees, many comes from the fact people don't pay off their cards every month and that far more subsidizes those payouts.

Lastly have you tried paying with cash online? While Bitcoin is a neat idea we are far from yet mass acceptance of any digital currency yet.