Quote:
Originally Posted by noppenbd
about purchases.
The fact is, Dunn & Bradstreet did a study and found people spend 12-18% more when using credit cards than when using cash. McDonald's found that the average transaction rose from $4.50 to $7.00 when customers used credit cards over cash. On a case by case basis it is not always true, but on the whole there is a differential.
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As for the McDonald's study, there are other explainations I think that could be used. There is the possibility that people who go to McDonald's don't have $7.00 or more in their pockets, that can be a lot of money to some. Then the only way to pay for their meal would be their CC. Thus, the higher transaction costs. Just an idea anyways.
Since they didn't interview each person who purchased things, there is really no way to interpret these results.