Do these stores incur higher expenses they have to pay to the credit card company for the higher charges by a customer?
If so - then yeah. They have a right to charge a fee for cash back.
Besides, there has always been a fee for using an ATM machine if it’s not in your banks network.
Pay the $3.50 or don’t.
What if I use a debit card to pay for my groceries? I just enter my PIN and the money is directly debited from my account. There are no credit card fees involved.
This would essentially be turning the checkout register into an ATM. The store would have to hold much more cash on-sight to cover the over-withdrawals. I wonder if Kroger, et. al., are figuring they are losing interest earnings by having to keep the cash on-sight instead of being deposited in the bank?
Personally, I live too far from my credit union, so traditional banking is very inconvenient. I now go to my local supermarket and withdraw the maximum allowed cash from the on-network ATM to keep at home for pocket money.
I also now pay for my groceries with a credit card instead of my debit card to get the credit card benefits, and then pay off the balance at the end of the month. Does Kroger have to pay a merchant fee on my credit card store purchases that I was letting them avoid by using my debit card?
Will stores like Kroger start passing on the credit card fees to their customers in the future?
-PJ
Dg is fighting credit card fraud. By making everybody share the cost. DG made record sales in 202e but lost money do to shrinkage. DG is being hit hard by shoplifters and thieves. Throw in stolen credit cards and people using DG for cash back. Go to the bank or an ATM if you need cash. Or are atms racist?