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Old Mar 24, 2024 | 5:33 pm
  #33  
OtherGuy
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Join Date: Sep 2021
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Originally Posted by LostInAmerica
My understanding is that this addresses swipe fees and processing. A 3% fee charged to merchants is tough on small businesses. Airline and credit card issuers are opposed as it would cut into their margin which allows them to offer rewards as a form of kickback. As mentioned above, this is similar to EU regulations and rewards still work there.
It's not really 3%. It's closer to 1%, but merchants are too stupid to shop around. If they did, they'd find other options closer to the true interchange rates, and getting it as low as 0.05% for debit cards.
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