alt Hacker NewsThat actually proves the point, because a market left to itself arrives at 2-3%, and it only goes lower if the government is dictating a rate.
Replies
Flimm • yesterday at 8:48 PM
What you are missing is that a market left to itself is not necessarily competitive when monopolies/duopolies form.
overfeed • yesterday at 11:40 PM
A duopoly is not "a market"
Dylan16807 • yesterday at 9:18 PM
Proves what point? GP was saying the government would only increase fees.
There are distortions in that "market" because credit cards aren't just for payment acceptance and fraud handling (which are narrow functions).
In the U.S., many credit cards bundle short term credit, rewards, travel benefits, insurance etc. This bundling is why merchants can pay up to 2-3% in fees.
The payment clearance and settlement parts are much cheaper. That's why many countries are able to build domestic payment rails (e.g. Pix in Brazil) that process transactions at low cost.