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by kyrra 1072 days ago
We already have debit card and the related networks (like Star) that are cheaper. People are just used to Visa, and like the rewards.
2 comments

I don’t use debit cards because it’s less secure than using a credit card. If I dispute a charge on a credit card I’m more likely to have a positive outcome than if I use a debit card. With a debit card the money is taken out of your bank account at the point of purchase. It’s hard to get it back in if I was charged inappropriately.
In the US, your debit card and credit card are protected by the same dispute rules under Regulation E.
My guiding principle is that it’s best to not let someone take money out of your bank account since putting it back in is a hassle. What happens in this scenario: You use a debit card to purchase something from eBay and what you got isn’t what was promised. eBay sides with the seller. What recourse do you have? With a credit card, in the worst case scenario, I just don’t pay the credit card company. I don’t care about credit ratings and credit card companies won’t sue me for the money. They’ll just ding my credit rating.
That seems surprising to me as Canada's equivalent system (Interac) is very popular.
Generally, retailers like credit cards because people usually spend more money when they pay with credit cards.

That is why you do not see major US retailers offer discounts for paying with cash/debit card/ACH. The only one I can think of is Target, that offers 5% off if you use Target Redcard, which can be linked to your bank account.

Until Dodd-Frank, the rules for discounts on cash transactions imposed by Visa and Mastercard by merchants were much more stringent.

Many retailers had their hands tied, whether or not they wanted to provide a cash discount or credit card surcharge.

Sure, but that was 13 years ago. Retailers also always had the option of simply not accepting credit cards, and only accepting debit cards.
I presume smaller retailers are hit the hardest with fees, as they face the most payment processing middlemen and have zero leverage in terms of volume from which to negotiate that stuff. So maybe Starbucks doesn't care how you pay, but Joe's Joe down the street has a hardwritten sign up by the till asking you to consider paying with debit or cash because it saves them a few percent on each transaction when you do.