Are there any consequences (direct or indirect) to others when you use or benefit financially from owning a credit card?

Question

Are there any consequences (direct or indirect) to others when you use or benefit financially from owning a credit card? Identify two other individuals or groups and explain how/why for each.

Please answer in a well-formulated and clear, understandable manner. Thank you for helping me understand. :)

Answer 1

Owning and using a credit card can impact others indirectly:

1. Credit Card Companies and Employees
2. Companies earn money from fees like interest and merchant charges, funding salaries and operations. If you avoid fees by paying on time, they rely on others to cover costs, which could influence fees or interest rates for all users.
3. Merchants
4. Merchants pay transaction fees for credit card purchases, often passing these costs to all customers through higher prices. Rewards or cashback cards are funded partly by these fees, impacting even those who don’t use credit cards.

Your credit card use creates ripple effects on businesses, employees, and consumers through fees and pricing adjustments.