Felt, Marie-Hélène; Hayashi, Fumiko; Stavins, Joanna; … - 2020 - This version: December 2020
Using data from the United States and Canada, we quantify consumers’ net pecuniary cost of using cash, credit cards …, merchants typically do not differentiate prices at checkout, but instead pass through their costs to all consumers. As a result …, credit card transactions are crosssubsidized by cheaper debit and cash payments. Card rewards and consumer fees paid to …