Quote:
Originally Posted by Gordon Booth
Neil, the card companies charge around 2.5% for credit card use. Asda pay that by charging you 2.5% more in the first place. If you pay cash or use a debit card- well, they've made a bit more profit.
If the charge isn't built into what you pay you'll see an extra charge of 2.5% added to your bill.e.g. paying for a holiday with a credit card. They warn you so you have a choice-credit(charge), debit or cash(no charge).
If you could add up all the money floating around in current accounts it would be? a lot.
The banks know how much they can expect to be holding so they know they can lend that amount at 6 or 7%- that's how the cost of your current is covered.
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But rather than the purchaser paying that charge it would usually be passed on to the suuplier with the big companys like asda.