Cash users pay $30 billion a year to credit card users, new data shows

A new study quantifies how much money moves from people who pay with cash or debit cards to people who use high-reward credit cards. It turns out this transfer is about $30 billion every year in the US.

Everyone assumed that credit card rewards were paid for by the banks or the credit card companies. It turns out, the cost is passed on to all shoppers through higher prices, even those who don't use credit cards. This means that people who can't get or don't use credit cards are subsidizing the rewards for those who do.