[geofft]

You're paying 0.7% primarily for the ability to pay, and also for the ability to pay on credit, to get a chargeback if needed, to cover fraudulent use of your physical payment device including loss, etc.

This is a) a good deal on its own and b) a much better deal than Bitcoin, which provides only the first of those things, and only reaches 0.7% if your transaction is over about 3000 USD.

If you think this is a bad deal, I'm curious what you think is a better deal and who's offering it.

[mrgordon]

A better deal is a debit card (somewhat fewer protections but saves people probably a 1% fee on average) but unfortunately the banks have set it up as a tragedy of the commons where it makes sense for me to get my 1-2% cashback since the 2.7% credit card fee is already built into the price due to other people.

With regards to Bitcoin though, I agree you need a much lower fee coin to make it feasible. The lightning network brings the transaction fees on Bitcoin to zero though from what I understand so maybe thats the answer.