#1
#1 out of 2
business1d ago
How high-end credit card perks are hurting shoppers who pay in cash
- Latest: Merchants face higher card fees and pass costs to shoppers, especially cash users.
- Harvard study estimates $30 billion a year shifts from cash buyers to premium-card users.
- Premium cards account for most rewards while traders pay higher prices, study says.
- Cash users often have lower incomes and rely on cash for daily purchases, data shows.
- Retailers lobby for swipe-fee caps; others push cash discounts or surcharges.
- Study notes cash is not free for small businesses due to cash-handling costs.
- Consumer experiences vary: some use cash to avoid debt and fees.
- Cash usage remains higher among lower-income households, Federal Reserve data show.
- Prices rose with gas costs and card fees, affecting rural and suburban shoppers differently.
- Policy debate continues on reducing swipe fees vs. protecting card perks.
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