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Old 01-31-2013, 02:17 PM   #10
bizaro86
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Quote:
Originally Posted by Jacks View Post
The merchant has been getting gouged by these companies for years. Don't kid yourself, these costs are passed on to the consumer.

If you do a $100.00 purchase and use your airmiles card you get 5 airmiles that are worth about $0.50 - $0.75. The merchant is charged $2-$4 for that transaction which they have adjusted their price to reflect. You think you are getting these great rewards but in reality you are paying big time for them and the money is going to the credit card companies, not the merchant.
I have a 2% cash back card from MBNA. If I make a $100 purchase, I get $2 back.
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