This sign is on the window of taxis in Singapore. Earn 1% cash rebate when you use your POSB MasterCard credit card to pay for the cab fare. Sounds good, until you remember that if you pay with pastic in a Singapore taxi, you get charged a 10% administration fee, or surcharge.
It doesn't make any sense at all. Pay an extra 10% for using plastic, and get all happy because you get 1% back at the end of the year? Did the person that designed the POSB 1% cash back promotion not know that customers get charged 10%?
Here's a revolutionary idea: find a way to get the cab company to waive the administration fee when a POSB MasterCard is used. The promotion would be much more powerful. Of course I'm sure the bank tried that, but the cab company probably rejected the idea. "What's in it for me?" says the cab company. "Your card just doesn't bring enough value for me to swallow the cost of accepting it."
Aha! That's the real key. Make the card much more attractive to the cab company, so they want to accept it and agree to pay the fees without passing them on to customers.