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Merchants don't automatically pass through all costs any more than they'd pass through all savings if all their customers moved to debit cards. It depends who h
by astrange 3y ago
Merchants don't automatically pass through all costs any more than they'd pass through all savings if all their customers moved to debit cards. It depends who has the pricing power.
- AnthonyMouse 3y agoNot really, because the "tax" applies to competitors as well. In an uncompetitive industry the merchant has pricing power and can just raise the price, true. But in a competitive industry, margins are thin and they have to raise the price or they go out of business, and so do their competitors, which is what allows them to.