> Why not just not have the fees and let prices be lower so that consumers have more cash? Chicken-or-the-egg problem. It won't even theoretically lower prices

> Why not just not have the fees and let prices be lower so that consumers have more cash? Chicken-or-the-egg problem. It won't even theoretically lower prices unless everyone switched over and credit cards are dead, but few will adopt it if it means missing out on cashback and other benefits they currently enjoy. (And yes, plenty enjoy them especially savvier, wealthier consumers.) And here's the crazy thing: it doesn't even lower prices in practice. Even where fees have been regulated down, the savings did not get passed on to consumers in the form of lower prices (this happened in Australia). Merchants kept that margin. It just didn't move the needle enough to overcome price stickiness and make an impact at the individual purchase level.. whereas annually 1-2% cashback or other rewards can feel more meaningful.