• Zess@lemmy.world
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    6 months ago

    The credit card company isn’t losing money because it’s already determined that giving people cash back won’t outweigh the interest and fees etc. that they’re really making money from. They use incentive programs to lure people in, hoping they won’t be able to pay off their balance each month. Those who can are basically getting discounts from the cash back program.

    • Alexstarfire@lemmy.world
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      6 months ago

      I’ve wondered about this for a long time. But I’ll never know for sure. Don’t know if overall I’m paying more, or a little bit less, with the cashback.

      All I know for certain is that, overall, the credit card companies aren’t losing money.

    • Hugh_Jeggs@lemm.ee
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      6 months ago

      If you think that, you’re exactly the kind of fool the credit card companies prey on

      • Zess@lemmy.world
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        6 months ago

        Yeah I’m such a fool for paying off my card balance every month and taking advantage of cash back programs. I should be smarter and pay with cash so it costs me more.

      • Krauerking@lemy.lol
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        6 months ago

        Well if the business is raising its prices on all products because of card processers then you would be the fool paying for it without getting the 5% back.

        They get their money mostly from interest rates and other means. It doesn’t mean stores don’t occasionally raise prices because of processing fees but that’s not part of some grand conspiracy.

        • Hugh_Jeggs@lemm.ee
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          6 months ago

          Or you know,live in any other country where they didn’t have to do that because people aren’t buttoned up the back

          • Krauerking@lemy.lol
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            6 months ago

            What? Nothing you said doesn’t change the fact that what you think is happening isn’t.

            I truly don’t even understand what this is trying to say.