- Image via Wikipedia
I saw this on a couple of different newsie sites this morning and I thought I would bring it to your attention.
One benefit of one of the new consumer protection laws is that retailers are now allowed to give discounts to people that pay with cash. So why would retailers want to give you a discount… the big reason is that they have to pay in order to accept your credit card. They pay a percentage of whatever you buy and sometime they pay a transaction fee as well.
I did notice on vacation that some of the service stations were offering a discount if you paid with cash instead of plastic. What I’m curious about is how much will they discount the prices. The most that the store would have to pay for a credit card transaction would be about 3% or so and I’m sure that the big stores like Wal-Mart have probably negotiated that fee down to 1% or even less. I guess that time will tell how much of a discount we’ll get. Till that time make sure to take a little extra cash in your pocket since it may be able to save you some money.
Enjoy your day.
