Have you ever stood behind someone at a store or a gas station and they are paying for a package of gum using a piece of plastic? I occasionally see this and kind of scratch my head, it is almost as bad as seeing someone writing a check at the supermarket. Earth to person, nobody does that anymore, well at least the supermarket thing. As much as it annoys me it is really bad for the merchant in both cases. The use of Credit and Debit today in Business to Consumer situations is universal. It is hard to think of a place that does not accept some sort of plastic in the B2C world. From Quick Service Restaurants to your Taxes, you can make a payment on Debit or Credit Card. And even if the establishment does not take credit or debit, you can make a payment via a third-party provider like Plastiq, assuming you are willing to pay a fee. For point junkies and those people who choose to go cashless, a flick of the wrist and you can get what you want when you want it with plastic.
To be sure Credit and Debit have a place in the modern economy, it would be hard to imagine life without these payment vehicles. They are ingenious instruments refined and developed over time to give consumers and businesses alike, a way to live, buy and conduct business. Consumers and businesses usually do not give any thought to the impact of their use from the Cardholder side of the equation. From the merchant side it can be a different story. In examining why discount rate is relative to average ticket it is important to know several key items to calculate total cost. Below are some examples that might surprise you.