Big Easy:
You are quite correct. The retailer does get a sale that may not have happened otherwise. However should you the cash paying customer have to that customers credit purchase with your cash purchase. Should a retailer pay more for your credit card transaction because your credit card offers "you" rewards (that was what I was trying to say that on rewards or corporate cards vs regular cards). As a retailer you have no choice in which cards you accept. You have a choice as to what brands like visa, discover, or amex but if you choose to accept visa you cannot decline to take visa rewards cards or visa corporate cards(by the way corporate cards cost the retailer almost double a reg type card, your card doesnt swipe and the retailer has to hand enter the numbers you can add another 50 basis points for that pleasure). I guess the point is most consumers when they wip out their card think nothing of it as they dont see the hidden cost to the retailer and hence themselves and everyone else. It is almost a hidden tax for everyone especially though for the cash paying customer. There is no oversight on what they can charge, there is no legislation concerning interchange rates( no I am not an advocate of regulation). I know, I know what the market will bear and that is fine but the average consumer doesnt even know they are paying for it as it is hidden. All those freebies and rewards they get are not free nor do the vast majority of consumers even redeem their rewards which is what the cc companies want. The consumer is more than making up for it in increased prices on virtually everything they purchase cash or otherwise. If the credit card companies charged those who use their product directly for the priviledge instead of the retailer you would see a lot less people using their cards if they knew they were going to pay an additional 2-4+ percent for their purchases.