Arcades had transaction costs too. They sold quarters in blocks. You couldn't just buy 1 at a time. Which is precisely how MC/Visa operate. Big players like App

Arcades had transaction costs too. They sold quarters in blocks. You couldn't just buy 1 at a time. Which is precisely how MC/Visa operate. Big players like Apple can sell songs for $1 because they pay for a minimum level of payment processing so their unit cost is less than the 2.9% + 30c or whatever the standard charge is.