The costs of fraud aren’t distributed evenly over a credit card companies customers. The ones that pay off every month obviously don’t pay extra, but those that

The costs of fraud aren’t distributed evenly over a credit card companies customers. The ones that pay off every month obviously don’t pay extra, but those that fall into debt traps pay through the nose. > IME businesses that take cash are mostly doing it for tax evasion, not to save you the transaction fee on cards. Business don’t give a shit about saving you money on transaction fees. All of their competitors build it into their prices, so it’s price that drives up consumer costs pretty uniformly, so there’s little advantage in trying to keep that cost down. It not like the businesses customers can find a competitor offer substantially better prices due to lower transaction fees. > And of course the responsibility for committing credit card fraud is on the criminal, not the bank. That doesn’t change the cost involved. I personally don’t give a shite who’s responsible, I just know I’m not responsible, and I don’t want to pay the cost. The current card network fee system is very similar to the US healthcare insurance system. Pharmaceutical companies can charge crazy high prices for medication, because the cost is paid for by insurance companies, the end user is never given the opportunity to shop around. As a result there is little competitive price pressure on pharmaceutical companies, there’s so many layers between them and actual price sensitive user, that they can basically just ignore the user, and rely on insurance companies to find a way to extract the rents the industry wants.