If you buy items with a credit card, merchants get charged by the CC Company as much as 4% on each purchase. Next week merchants will no longer get charged that 4%, but will we as consumers? Here is something more to consider. Many merchants have calculated that 4% into the charges to the consumer and some offer a reduced price if you pay by cash. So now who will eat that 4% cost? I think we eat it either way and we as consumers will pay. My question is this – merchants who have figured this 4% cost into their products & services, will they now lower their cost to the consumers? I think not. So consider this. We may pay the higher price calculated by adding that 4% into the cost or products & services and now if the banks or CC Companies decide to charge us for each transaction 4% then we are now paying 8% more on purchases.
4% Credit Card Costs–who pays now?