Hacker News Reader

Pay in full customers can be profitable through interchange fees alone, so I don't really follow how it is a wealth transfer

View on HN

Merchants almost never pass along interchange fees to the customer. Instead, it's built into the prices that every customer pays the merchant, regardless if the customer uses a credit card, which means everyone pays for credit card rewards.

Are you saying that in the US, there's no "credit card surcharge" line item near the bottom of your receipts to cover it?

Sometimes, not always.

Yeah, they include the surcharge in the list price and give you a "discount" for paying in cash (or direct debit).

Some merchants include it as a separate line item. But remember that taxes aren't included in the list price, so it doesn't stand out as much as it does in other countries.

Reply on news.ycombinator.com