Quote:
Originally Posted by Stockerzzz
Debit cards have the same purchase protection.
Using credit cards reduces the friction in each purchase which encourages overspending. Sure, you may think the points are worth it and you're outsmarting Visa (market cap: $319B) and Mastercard (market cap: $209B), but you're spending more than you normally would by using credit.
If you get 2% cash back, you need to spend $100,000 on credit cards to make $2,000. But at the same time you just overspent by 12-18%.
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Don't confuse the fact that people with access to financial institutions tend to be higher income and more likely to spend more money with a "cash discount". People aren't spending more at McDonald's with a credit card because MCD is upcharging them for using a card. They are spending more because people with cards tend to have more money and therefore spend more money. Think of it this way, zero percent of panhandlers who drop into McDonald's for a meal use credit. Their bill is probably whatever change they've managed to gather. That has nothing to do with the benefits of cards vs cash.