[refurb]

No, it’s not like at some point merchants said “oh yeah, let’s add 2% to account for credit card processing fees”.

The appeal of credit cards is higher volume - more purchases because people can put it on credit, it’s more convenient, etc. That’s why you’ll see even roadside fruit stands offer credit card payments.

Plus stores are in competition with each other (to varying degrees). Some will choose to absorb the entire 2% or a part of it since, in their mind, it’s a net positive trade off.

It’s like saying a 5% increase in property taxes are just passed through as a rent increase. It all depends on the market. The right answer is something between 0-100% is passed through.