[apazzolini]

Because you're leaving 2-3% on the table for every transaction. Using a credit card doesn't mean you can't pay it off in full every month, costing you zero in interest, while taking advantage of reward programs.

[wilcoooo]

On top of all the benefits, if for some reason you get hit with fraud or scammed on a debit card, it's a lot harder to get that money back. Credit is an extra layer of protection.

[Twisol]

I've heard this, too, and it's a good reason to use a credit card at least for significant purchases. But I'd rather see those same protections extended to debit cards. I wish I understood why they aren't.

[Twisol]

I have heard this, and it is probably a flaw in my approach to purchases. But is that really justification to ask "who in the world uses debit cards"? I still feel more comfortable not being on the hook to somebody, and the organizations that extend lines of credit don't do so as a prosocial program, certainly. (Just because some people can safely make use of credit doesn't mean everyone can. I know someone who has unfortunately made poor use of their credit card, and I don't necessarily trust myself to avoid a similar fate.)

[BenjiWiebe]

No, credit card companies aren't giving out rewards at a loss. Better cards have a higher interchange rate, ie the merchant pays more fees to accept a good card.

Hence why cash discounts are a thing (and yes they're legal again).

[Sn0wCoder]

You do realize that 2-4% is not left on the 'table' its taken from the merchant you are shopping at. If you are at a big box store sure but when going to local merchants its best for them if you use debit or cash. One could argue the merchant 'choose' to accept CC but in this day and age its more like extortion because the CC lobbyist were able to make it illegal to pass that charge onto the customer.

[herewulf]

Don't you think the 2 to 4% is built into the prices of every merchant that accepts credit cards, big or small?

It's not a great system but it's what we have so using debit instead of credit does mean losing out.

[Twisol]

I had this thought as well. I didn't want to raise it myself, because I don't have any personal evidence that this is the case, but of course the "cash back" has to come from somewhere.

[phil21]

> the CC lobbyist were able to make it illegal to pass that charge onto the customer.

This is no longer a thing, there was a settlement with Visa/MC that removed this provision from their merchant contracts. You are now allowed to pass on transaction fees if you feel like it as a merchant.

It was also never illegal. It simply was part of the contract to do accept Visa/MC/Amex and they'd close your merchant account if you got caught doing it.

[blonder]

Handling cash costs money too though. I know some small business are credit/debit card only since they do not want to deal with the hassle of cash. Out of everywhere I have been, only one place (some grocery chain in SLC) has accepted debit cards but not credit cards.

[direwolf20]

In some countries they simply outlawed such high fees, merchants pay lower fees and there's no cashback.