Question about computer store discounts

[mocash]

I was wondering why some computer stores give you a discount(around 3%) on parts if you pay by cash or debit as opposed to paying by credit card? Are there any drawbacks by paying cash??

 

[JustAnAverageGuy]

Mostly because they know they have the money at THAT moment. And there is little possibility of a CC company saying they want the money back because joe schmoe didn't pay his bill.

 

[Jumpem]

Because credit card companies charge stores 3-5% for the service.

 

[Matthias99]

It actually depends on how much business you do. Either you pay 3-5% off the top and a smaller fee, or a larger annual fee and something like 1-2% of the purchases that go through. It can be even less if your volume is large enough. I've seen cash discounts mostly with smaller local stores, who have the most to gain by not going through VISA. A reseller like Dell, I would imagine, gets *very* favorable terms from credit card companies.