Quoted from ronaldvg:Look at it like this: if I pay 10 dollar to a business, they do not get the full 10 dollars but have to give some percentage to the creditcard company. If this happens say 50 times or whatever, the original 10 dollars are gone in cost.
If I pay 10 dollar cash, this 10 dollar can be spent over and over again without any cost whatsoever.
Think about it.
The money does not decay or disappear....
Your 50 times theory has the cost paid 50 times as well. Margin they have on your sale... is still the same.
You paid 10.... the business will get x, the gov will get y, the payment processor will get z, etc. the flaw in your thinking is that you gave the business 10. No, they collected 10... not got 10 for themselves.