They mean the rewards. You can get some % cash back with no annual fee. Effectively my credit card costs me nothing, comes from the same bank as my checking and savings, and gives me cash back.
the other end of this is that all of those rewards are paid for through merchant fees, which lead to higher prices at the register. it's not free money. it's a fraction of a percentage of the profit credit card companies receive in fees paid by the places you shop. i would not be surprised to learn that even with rewards points we spend more money now that those programs are commonplace.
> merchant fees, which lead to higher prices at the register
Only for merchants who have never done real accounting. They lose a lot more than merchant fees to cash. The clerk has to count and recount the money. Then the manager counts and recounts the till at the end of the shift. Then the manager counts all the money in the safe to prepare the daily deposit, and then they have to get that to the bank (at least the bank doesn't charge them after that, but the bank has costs handling their cash as well). This time is not free. That is before we get into the costs of theft, counterfeits - and all the equipment to keep cash safe.
Unless someone has actually added those costs up I'm going to remain convinced credit cards fees are cheaper than cash.
Still worth it so I can chargeback shitty merchants.
Example, my landlord specified in my original lease one time pet fee. In my newest year lease no pet fee. I was required to pay the pet fee through some saas dedicated to this. Now that website emailed me to let me know they’ll be charging my annual fee.
What fee? What for? They are providing no ongoing value to anyone as far as I can tell. They refuse to explain or cancel. Well they can explain to Mastercard and I’ll wash my hands of the situation.
Credit cards are an interest-free loan of 1-2 months. That’s literally free money.
The rewards are also free to me in the sense that the merchant pays them. If the merchant has priced them in, then the rewards aren’t free, but using cash is throwing away something I’m still paying for.
