Originally Posted by
Raffles
You always know an argument is failing when people fall back on ‘xxxx did this and prices in shops did not fall’.
Firstly because, of course, retailers have multiple other ever-increasing costs except card fees.
Secondly because even someone with the thinnest grasp of economic theory knows that any business making ‘excess’ profits by pocketing cuts in overheads will soon find a competitor attacking them who is prepared to pass that through.
(And even if the retailer DID pocket the savings in card fees, why is that worse than Visa pocketing it? The retailer is more likely to use the money to open more sites and hire more people, creating growth - unlike Visa.)
This argument can be used against every regulation, of course. Yet, regulation exists.
Of course, even someone with the thinnest grasp of economic theory knows that money is fungible, and there are other ways firms can alter their balance. For example, they can spend less money funding blogger sales people.