Visa
Acquired
Impact of credit card system on consumers and retailers
The credit card system can be seen as a wide-scale bribe of the American consumer, leading to inflated prices for all consumers, especially those using cash. Independent research suggests that it creates a reverse Robinhood scenario, benefiting the wealthiest consumers with rewards cards, while all goods are marked up to accommodate interchange, making things more expensive for non-rewards card users. The Federal Reserve Bank of Boston found that households using cash pay $149 inflated prices annually as prices have to go up to make paying in cash and cards equivalent.
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