Impact of Credit vs. Debit Card processing fees on Cash Back bonus+?

[Anonymous]

It seems that as consumers we think we want 2%+ cashback, but what if all we are doing is allowing the credit card processor to rebate off the highest possible transaction fee, possibly raising prices in the store for all consumer including ourselves? 

Of course if true, we are all concerned this is the prisoners dilemma.

If anyone has seen updated numbers on the difference between Credit and Debit processing fees as a function of cash back award wouldnt that be interesting

Average Credit Card Processing Fees and Costs in 2020 | The Ascent (fool.com)

Costs of Choosing Debit vs. Credit with a Debit Card (thebalance.com)

[Credit12Fico]

It's not just in your imagination. This is what happens. The entire credit/debit and payment network industry cost are built into the prices of the items we buy. Those unable to obtain credit and relying on debit/cash pay the most. Those with good credit and fancy category bonus cards are getting rebates in the form of cashback so they pay the least.

[FishingGuy]

This is in the process of changing on a national basis.... since many merchants are beginning to pass on the fees the merchant pays to the consumer that uses a credit card.  This can be done in two distinct methods, that provide the same effect for the merchant ( in many cases ) The two similar ways are ..."surcharging" for the use of a credit card... or a "cash discount" for those paying cash.   

You have seen this for years at the gasoline pumps,  but it is now in the process of being implemented in many other types of merchants.   One difference, ( but not the only )  is that you can not surcharge a debit card.

You will see this becoming more & more popular as times goes on....... especially since many merchants are and have been suffering from covid lockdowns in many states..... such as NY & Cali.... and they need to reduce their expenses to even have a chance to keep their doors open.

[Anonymous]

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@Credit12Fico wrote:

It's not just in your imagination. This is what happens. The entire credit/debit and payment network industry cost are built into the prices of the items we buy. Those unable to obtain credit and relying on debit/cash pay the most. Those with good credit and fancy category bonus cards are getting rebates in the form of cashback so they pay the least.

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Plenty of debit cards offer discounts, rebates, higher interest on checking/svaings accounts, or cash back (in many different ways). Good/great credit is not required for that.