This is not new. In 2003 a reform instituted by Australia’s Reserve Bank allowed merchants to recoup the service fees that credit card companies have always levied, generally 1 to 2 percent of the total transaction. Hotels, restaurants and other businesses were then permitted to tack on a surcharge—not to exceed the amount the credit card company charged the merchant—to the customer’s bill, as long as it was clearly posted. Since then, add-ons for credit card users in Europe have emerged, and they tend to be levied on travelers (taxis, car rentals, airlines, etc.) more than others.

In the U.S., credit card companies have (so far) successfully lobbied to prevent their merchants from adding a surcharge. Although I was initially opposed to the concept of surcharges for credit card users I have come to see the flip side—that merchant fees artificially inflate the cost of the merchandize or services we purchase. If you’re paying with a credit card that returns some of that fee to you in the form of miles or rebates, you’re not shifting much into the pockets of banks—the higher price the merchant charges you is offset by your reward. But if you’re paying with a credit card that doesn’t provide rewards, or you’re paying with cash or a debit card, you’re effectively paying up to a 2 percent surcharge through higher prices—just to subsidize those of us who get the rewards.

Guess who pays for airline tickets in cash or with debit cards? Should they be subsidizing our rewards? Should they be paying for banking services they don’t benefit from?