▲ 436 ▼ Why the banks want a cashless society (lemmy.world) submitted 3 months ago by K1nsey6@lemmy.world [M] to c/latestagecapitalism@lemmy.world 114 comments fedilink hide all child comments
[–] SaveTheTuaHawk@lemmy.ca 2 points 3 months ago (1 child) That’s why stores often have a $5 minimum for cards. no, it's a percentage of total monthly transactions. The $5 minimum is a bullshit excuse to make you buy more. permalink fedilink source parent hideshow 2 child comments replies: [–] BarneyPiccolo@lemmy.today 1 point 3 months ago The fees on CREDIT cards are confusing, with the percentage changing based on volume, etc. I once found a really good explanation online, and it made perfect sense for about 15 minutes, and then it faded again. Debit cards usually have a fixed fee per transaction, as well as a percentage based on volume. Credit cards don't have that fixed fee, just a percentage of the total, so they don't care if you use it on a small purchase. But if the fixed fee is 50 cents, and you buy something that is 50 cents, they literally lost money. Even in a case where the item is 2 or 3 dollars, that 50 cent charge is a big hit to the profit. Do that 100 times a day on things like cans of soda and candy bars, and much of your profit on those items gets eaten by the fees, and those things are a BIG part of the profit for something like a convenience store. permalink fedilink source parent
[–] BarneyPiccolo@lemmy.today 1 point 3 months ago The fees on CREDIT cards are confusing, with the percentage changing based on volume, etc. I once found a really good explanation online, and it made perfect sense for about 15 minutes, and then it faded again. Debit cards usually have a fixed fee per transaction, as well as a percentage based on volume. Credit cards don't have that fixed fee, just a percentage of the total, so they don't care if you use it on a small purchase. But if the fixed fee is 50 cents, and you buy something that is 50 cents, they literally lost money. Even in a case where the item is 2 or 3 dollars, that 50 cent charge is a big hit to the profit. Do that 100 times a day on things like cans of soda and candy bars, and much of your profit on those items gets eaten by the fees, and those things are a BIG part of the profit for something like a convenience store. permalink fedilink source parent