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New revenue source for Detlef?


driveby
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I'm not advocating restaurants doing this, but I don't appreciate the tone this guy takes. My guess is that restaurants, irritated that they're being forced to offer insurance, are doing this as a way of protest. They could have just as easily raised the prices on everything a few bucks and nobody would be the wiser. So, it's not a "scam" as he puts it.

 

I bet this guy happily uses his high rewards card every time he goes out. That's a much bigger scam. Once upon a time, it was easy to avoid accepting these sorts of cards. For the record, I'm referring to cards that offer really high cash back but pass that and then some on to the merchant in the way of significantly higher processing charges. Now, however, you really don't know whether you're taking a normal Visa (which typically also offer rewards, just not as high) or one that's going to hit you with maybe twice the charge to accept.

 

So, when they say, "We'll give you cash back on everything you spend." What they really mean is, "We'll strong arm your local restaurant into giving you a discount when you use our card and take a little money for our troubles." Ultimately, it just pulls money out of your local community.

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They could have just as easily raised the prices on everything a few bucks and nobody would be the wiser.

The net effect might be the same but I'd rather that. At least then I feel I'm paying it for the food and can "contrast and compare" w/others on equal footing.

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