Credit Cards are both a blessing and a curse. Many businesses like credit
cards, even if they have to pay a fee. They feel that it helps bring in
customers who normally would not be able to purchase their products due to
lack of funds. They feel the 2-3 % surcharge is worth it. It doesn't cut
into their profits as they add that cost into the price of the product. The
bank that the shop does business with pays the shop keeper right away as
soon as he/she turns the receipts into the bank for processing. Even if the
customer may not pay the bank for months, or possibly never.
Businesses pay this fee, but they also save:
- The cost of running their own credit operation
- The cost of bad checks
- The cost of handling as much cash, counting cash, safeguarding cash, and depositing it -- surprisingly, this process is not free.
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