How high-end credit card perks are hurting shoppers who pay in cash

A Harvard study estimates that people who pay with cash and debit cards are subsidizing $30 billion a year in points and perks for credit card users.

This article is part of “Unaffordable America,” a series examining rising economic inequality in the U.S. and the policies that drive it.

Subscribe to read this story ad-free

Get unlimited access to ad-free articles and exclusive content.

RUCKERSVILLE, Va. — At the Tiger Fuel gas station and convenience store near the foothills of the Blue Ridge Mountains, the managers expect to pay more in fees to credit card companies this year than they will on rent — one more expense weighing on the company and its customers amid the surging price of gas.

Those credit card fees — which can be as high as 5% for some premium cards offering luxury perks and hefty rewards — have been contributing to higher prices and limiting how much the store can spend on other areas, like wages, said Maurice Lamarche, vice president of retail operations for Tiger Fuel Co.