Skip to main content
No. of Recommendations: 0
Why not? If they can afford to give credit card holders cash back, why couldn't they also pay debit card holders the same?

My understanding is that PIN debit cards don't have the same built-in profit that credit cards do. I looked at US Bank, and their check card rebate requires that you pretend that it's a credit card rather than a debit card by hitting "credit" on the keypad when you check out. Is USAA the same way? I'm pretty sure this means that the merchants get hit with the regular credit card fee rather than the lower debit card fee, and therefore that your merchant is helping to finance your rebate.

It's not an unreasonable opinion not to care about any of this, and figure that whether a merchant pays fees doesn't matter to us the consumers. But this does affect our prices. I remember that for a while, gas stations were giving a cash price and a credit price. Most consumers hated it. But I thought it was great, because it passed the credit card fees on to me and gave me a choice on whether to pay it, rather than having to pay for everyone else's choice.

In addition, while in big cities it doesn't really matter, in smaller places it's a big issue whether money goes to local merchants or to Visa/Mastercard. Since local economies benefit when the money stays at home, and since Visa/Mastercard does nothing for my community, my vote is with the local merchants.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.