They are. It is a modest price to pay for legal protection at that level.
replyIn what world is 2-3% of every payment "modest", when actual fraud losses are an order of magnitude below that?
replyThe consumer reaps the benefits, but the 2-3% is charged to the merchant and the consumer gets some of that back as rewards points/cashback/etc.
replyOf course the business passes its costs right back to the consumer, but it's not visible to them, while the benefits are.
Australia recently capped credit card fees. Yes, it has lead to a decline in credit points/cashback but in the end it's leaving more money in your pocket.
replyExactly, but a hidden cost is still a cost.
replyAlso: if the merchant does not offer a cash discount, it's not the card user that's paying the cost.
replyOf course they still are. Just because you can't avoid paying a cost doesn't mean you're not paying it.
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