In Australia the government decided this was non-competitive and regulated interchange fees down to less than half a percent. They still have credit cards, but

In Australia the government decided this was non-competitive and regulated interchange fees down to less than half a percent. They still have credit cards, but limited rewards programs. The 3% processing charges are really just inertia in North America, since costs have gone down a lot over the decades, but the fees have been reallocated into marketing/rewards.