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by supernovae 1618 days ago
2-3% "tax" isn't really a tax, it's a small cost to increase the buying power of people without debt and its a small fee for the recourse action buyers have in shopping protection.

For example, with my costco card I get extended warranty on everything I purchase, fraud protection, buyer protection and I get cash back. If i was a retailer, I'd be super thrilled that people use Costco cards because my products I sell are backed by that cards extended coverage and consumer protections. They file the extended warranty claim with the card carrier, not me. Sure, I can sell junk coverage - which many electronic stores used to do but those were always junk and didn't turn into revenue streams when the cost of selling junk caught up to people refusing to shop there and hating the store/service. (Looking at your Circuit City)

Prior to credit cards, we'd never have a TV, Microwave or computer in every home.

Not saying that I "Love it", but we can't deny the buying power of debt and what that has done for consumers and more importantly retailers over the years.

Interestingly, for many purchases if the bank chooses to charge it as a debit, then you have no recourse and some banks consider debit a cash transaction and charge YOU a transaction fee (non bank cash use) that is much more than 1-3% fee in the end that would be in the product...

I have no idea about censorship resistant... i can use my card to buy porn, legal weed or whatever...

1 comments

None of the legal weed stores in my state take credit cards but they do have ATMs in the lobby. Cannabis is still federally illegal so, as I understand it, banks big enough to issue credit cards want nothing to do with it.
In Colorado, it just shows up as a candy shop or something like that. long time ago it was just ATMs, but i believe they said they set up their own Colorado state Credit Union to process the charges and have been doing so for a while... always joked that it pays to discover