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Rewards Cards-Who Pays?

Rewards Cards may be enticing to credit card users but who actually pays for the rewards points cardholders earn on purchases? Dan Hoffler is the Petroleum Manager for Robinson enterprises which operates multiple gas stations in Grass Valley and Nevada city. He says businesses pay from one and a half up to five percent for the privilege of using the credit card system depending on the type of credit card. He says if you have a rewards type card the business pays even more and in most cases that cost gets passed on to the consumer. click to hear Dan Hoffler

Hoffler says the high use of credit and debit cards has forced businesses to comply with the credit card companies if they wish to use their cards. Many of the local businesses’ profit margin is so small they have to pass the costs of using credit or debit cards on to the consumer.

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