[rrrrrrrrrrrryan]

Yes - the banks then hand a substantial portion of these fees back to the customer via credit card rewards.

We have a bizarre system where retailers mark everything up an extra 2%, to give their more well-off customers (that pay with decent credit cards) an effective 2% discount and the ability to dispute charges.

I think retailers would love a new system with less transaction fees, but banks definitely would not, and some customers may not either if it means sacrificing their credit card rewards and perks.

[oliv__]

Come on now, everybody's got a 2% cashback card

[macromagnon]

Some even have 3-4, all maxed out.