So I learned recently that for particular items at this department store they will no longer be accepting credit card transactions as you will instead have to use cash and debit. While there was no explanation as to the reason for this my educated guess would be that for these items the company makes virtually no money off of. However, whenever people use a credit card the company is charged a fee for this. So they are basically losing money.
As the consumer I am semi inclined to shop at a different place as I personally would like to earn my points and cash back rewards. From a business standpoint I guess it can be tricky as in one end you are probably saving a ton of money this way. On top of that you have to factor in how many customers you are potentially losing to see if you are really walking away with more money at the end of the day.
For the most part I would think sacrificing the expense of enabling credit card purchases will ultimately bring in more people meaning more profits.