Hidden externality. Retailers eat the cost in order to get the customers. Cc processors earn the cost. Banks, in order to get customers, pass some of the doug

Hidden externality. Retailers eat the cost in order to get the customers. Cc processors earn the cost. Banks, in order to get customers, pass some of the dough back to consumers in marketing and rewards. So it's somewhat fairer now than it was ten years ago with similar fees but less rewards. But an economist would say that optimal would be to massively reduce fees and take away rewards.