DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - is there any reason not to have a negative balance on my credit card?

**ziIReIGS** · 08-14-2011, 09:03 PM

So everything is 1% cheaper. Got it.

However, that sounds like it's really ripping off the merchant...kinda bullshit.

Think for a moment about the equilibrium solution of the system in which people have N+1 payment options: cash, and N different credit cards, each of which has monopsony power over retailers (in particular, it can force retailers not to add a markup to people using its card).

08-14-2011, 09:03 PM	#17
ziIReIGS Join Date Oct 2005 Posts 385 Senior Member	So everything is 1% cheaper. Got it. However, that sounds like it's really ripping off the merchant...kinda bullshit. Think for a moment about the equilibrium solution of the system in which people have N+1 payment options: cash, and N different credit cards, each of which has monopsony power over retailers (in particular, it can force retailers not to add a markup to people using its card).
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