Zeev's Turnips Patch-No Politics (ZEEV)

[Elroy Jetson]

I wonder how the ratio of cash to credit card sales would change if the cash price were less.

I'm sure many have credit cards like my Bank One Visa (soon to be JP Morgan) which pays a 1% rebate on all purchases up to $60k per year. An annual $600 check, plus not having to deal with change, is enough for me to prefer charging even my groceries. The balance is deducted automatically each month from my checking account.

Since I assume Visa charges merchants roughly 2% for each charge, wouldn't most businesses come out ahead by offering a 1% or so discount for cash.

Does the contract with Visa prohibit this?