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Joined 2 years ago
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Cake day: October 19th, 2023

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  • I can’t comment on the situation in other countries, but in the US, in the majority of cases, it’s cheaper for businesses to take cash. In the US, the first few thousand dollars of cash deposits are typically free every month. Beyond that, pricing varies. My bank charges 0.35% on cash deposits, which is considered quite high, though it works out to only $42 per week in my example above. The credit union I have my personal accounts with charges 0.15%, which would be $18 a week.

    The cost of labour has already been factored in and it still results in savings. The cost of security is comparatively negligible. A $300 safe is a one-off purchase that pays for itself in a fortnight.






  • It is definitely not true that Discover interchange rates are significantly higher than Visa or Mastercard.

    I’ve put below a list of the actual interchange rates for various personal Visa, Mastercard, and Discover cards types.

    Debit:

    • Visa Debit Regulated: 0.05% + 22¢
    • Discover Debit Regulated: 0.05% + 22¢
    • Mastercard Debit Regulated: 0.05% + 22¢
    • Visa Debit: 0.8% + 15¢
    • Mastercard Debit: 1.05% + 15¢
    • Discover Debit: 1.1% + 16¢
    • Visa Debit Prepaid: 1.15% + 15¢
    • Mastercard Debit Prepaid: 1.15% + 15¢

    Base credit tiers:

    • Visa CPS Retail: 1.51% + 10¢
    • Discover Consumer: 1.56% +10¢
    • Mastercard Consumer: 1.65% + 10¢
    • Mastercard Enhanced: 1.8% + 10¢

    Rewards cards:

    • Visa Rewards Traditional: 1.65% + 10¢
    • Visa Rewards Signature: 1.65% + 10¢
    • Discover Rewards: 1.71% + 10¢
    • Discover Rewards Premium: 1.71% + 10¢
    • Mastercard World: 1.9% + 10¢

    Premium cards:

    • Visa Rewards Signature Preferred: 2.1% + 10¢
    • Discover Rewards Premium Plus: 2.15% + 10¢
    • Mastercard World Elite: 2.3% + 10¢

    You can plainly see that Discover tends to be more expensive than Visa but is cheaper than Mastercard. The only reason I could see that someone might refuse Discover is because Discover cards are all rewards credit cards that go into the higher tiers, whereas many Visa and Mastercard cards are debit cards which go into the lowest tier.