Lunch Shoppe

But the fees also generate tens of billions of dollars in revenue each year for banks that issue cards branded by Visa and MasterCard. In the United States alone, banks that issue credit cards get an estimated $40 billion to $50 billion in income annually from interchange fees, and the companies are lobbying heavily against proposed changes. They warn that lower fees will lead them to squeeze credit and raise the cost of credit cards at a time when the economy thirsts for credit to sustain an economic recovery.

We might find credit cards convenient, but to the merchants who accept credit cards it is not as it costs them extra per item to sell. This is why many places have a minimum before they accept credit even though the terms of service agreements with Visa and MasterCard prohibit that.