Rewards cards cost more to accept because the perks are built into the fees. Cash back, points, and travel rewards are funded through higher interchange rates set by the card brands. That cost does not disappear. It gets passed to the merchant. The more generous the rewards, the higher the interchange on that transaction. From the customer’s side, rewards feel free. From the merchant’s side, they increase processing costs. That is why premium and rewards cards usually come with higher fees. #Pay
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