> The US also has incredibly pro-consumer regulation over credit cards
Not to take away from your example, but I was under the impression that transaction fees charged when using a credit card in the US were significantly more than in say, the EU?
They are. It is a modest price to pay for legal protection at that level.
In what world is 2-3% of every payment "modest", when actual fraud losses are an order of magnitude below that?
The consumer reaps the benefits, but the 2-3% is charged to the merchant and the consumer gets some of that back as rewards points/cashback/etc.
Of course the business passes its costs right back to the consumer, but it's not visible to them, while the benefits are.
Australia recently capped credit card fees. Yes, it has lead to a decline in credit points/cashback but in the end it's leaving more money in your pocket.
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