Comments on: Why don’t all stores accept credit cards? http://blog.creditorweb.com/index.php/2007/08/27/why-dont-all-stores-accept-credit-cards/ A survival guide for the plastic jungle. Mon, 20 Dec 2010 03:56:22 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Manuel http://blog.creditorweb.com/index.php/2007/08/27/why-dont-all-stores-accept-credit-cards/#comment-237 Manuel Fri, 09 Nov 2007 16:52:53 +0000 http://blog.creditorweb.com/index.php/2007/08/27/why-dont-all-stores-accept-credit-cards/#comment-237 I believe this charge depends on the agreement the merchant has. If the charge is purely variable, then the ammount doesn't matter. And there are other benefits for the merchants in accepting cards: 1) increases liquidity as the payment will be immediately accessible in his account (again this depends on the agreement) . i.e he can use it to purchase his goods immediately 2) reduces the risk of theft 3) reduces the risk his employees will deviate cash 4) lead shoppers to spend more About this subject, there's a very interesting study by the Sveriges Riksbank: "The Costs of Paying – Private and Social Costs of Cash and Card Payments". I believe this charge depends on the agreement the merchant has.
If the charge is purely variable, then the ammount doesn’t matter.

And there are other benefits for the merchants in accepting cards:
1) increases liquidity as the payment will be immediately accessible in his account (again this depends on the agreement) . i.e he can use it to purchase his goods immediately
2) reduces the risk of theft
3) reduces the risk his employees will deviate cash
4) lead shoppers to spend more

About this subject, there’s a very interesting study by the Sveriges Riksbank: “The Costs of Paying – Private and Social Costs of Cash and Card Payments”.

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