[imustbeevil]

That's completely arbitrary though. They could also increase prices without any interchange fee. If people are willing to pay, the price goes up.

Cost (of which the interchange fee is but one) only affects the lowest possible price. No one ever gets that price.

[chneu]

CC fees are transferred directly to customers. It isn't arbitrary. There are plenty of low cost stores that don't accept CCs for this reason: it hurts low income people more than others.

It saves 2-3% to the consumer for grocery stores.

[bryanlarsen]

People wouldn't be willing to pay the extra amount if it was cheaper at the store across the street.

But the store across the street also has to pay the interchange fee, so they're not cheaper.