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There are already different fees charged based on card types, which is why you see some merchants accept Ames/Discover and some not. They have different per-tr

There are already different fees charged based on card types, which is why you see some merchants accept Ames/Discover and some not. They have different per-transaction fees and different transaction percentages (at least the last time I saw, long ago). If a card offers a smaller fee, I imagine some processors and then merchants will jump on it ASAP. What's half a percent off the processing fee to Amazon/Walmart/Target? Hundreds of millions to billions of dollars, given it has a disproportionate affect on profit since it applies to total charged. I'm sure this is also why Target tried to get you to sign up for their own card, and offers you a percent off all purchases at target with it.

JoshTriplett 7y ago
> There are already different fees charged based on card types, which is why you see some merchants accept Ames/Discover and some not. But those merchants are not allowed to accept both but pass through their fees. Rather than seeing a prohibition on rewards, I'd rather see a prohibition on the anti-competitive terms that prevent merchants from passing through credit card processing fees. Then a card that charges less to the merchant would be just as good as a rewards card.