In the US, rewards are usually 1-2% on most credit cards, and up to 5% for certain purchase categories on a few credit cards. These rewards are funded by intere

In the US, rewards are usually 1-2% on most credit cards, and up to 5% for certain purchase categories on a few credit cards. These rewards are funded by interest income, annual fees, penalty fees, and interchange fees. Interchange fees are typically between 1.3% and 3.5%: https://www.fool.com/the-ascent/research/average-credit-card-processing-fees-costs-america/ https://www.fool.com/the-ascent/research/average-credit-card... The Durbin amendment allows merchants to offer lower prices to customers who choose a payment option that incurs lower fees (such as cash or debit card) at the point of sale: https://en.wikipedia.org/wiki/Durbin_amendment https://en.wikipedia.org/wiki/Durbin_amendment Compare this to Apple, which takes a 30% cut. Developers must raise their prices by 42.9% to compensate for that 30% cut. Apple does not allow developers to offer alternative payment options for most categories of in-app purchases. For a long time, the standard rate for payment processing for small businesses has been 2.9% + $0.30 for credit cards. Larger businesses with higher transaction volumes are able to negotiate lower rates. If Apple allows developers to offer payment processing options that take smaller cuts, and allows developers to offer lower prices when customers choose those options, I'm certain that most developers and customers would prefer the third-party payment processors.