Credit Card Processing Fees – Why 2.9%?

What is the reasoning behind the 2.9% market floor for credit card processing fees?

Last year we spent enough on credit card processing fees to have purchased a car with cash. This seems like a good deal for the invoicing companies, but not the best deal for everyone else. I’d rather utilize that money myself.

We have services to send money to people for free. Venmo, Zelle and all the online payment companies in different countries work perfectly well. It’s not impossible to receive money without paying the intermediary…

Dear credit card companies,

What is the reasoning behind this? Is it to offset the cost of fraud protection and server expenses for the credit card companies? Is this just a systematized way for technologists to get rich?

I’d love to know.

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