You buy things with a credit card, you pay for those things. It seems pretty closed loop.... but then how do the credit card companies stay in business? Businesses are charged when you use your credit card. Rates very between 2% and 5% on every dollar spent. The fact of the matter is that prices of goods are a little bit higher to cover these costs. On a macro level, one can assume that prices of goods are on average X% higher according to the following equation:
X% = (Total Credit Card Payments)*(Average rate charged by credit company)/(Total Payments)
I would wager to say that this number is somewhere in the 2% range.
That being said, if you do not have a good rewards program on your credit card that gets you 2% or more back, you are getting the shaft. Most of wealthy america has the credit to reap massive reward benefits. If you are a poor person without the credit to qualify for these exclusive reward programs or a bum using cash to buy your food, I am sorry. You are most certainly getting shafted by corporate america because you pay a higher price for goods and don't reap any of the rewards.
Just another way the rich get richer and the poor get poorer.
