> Is it actually proven that the costs are passed on (i.e. that the price would be lower in absence of credit cards)? Because, again, in theory that only works if the demand has enough inelasticity.
Go buy something at your local No Name Shoppe and compare it to what you were paying 3 years ago. Adjust for inflation. Be shocked by the random ~3-4% cost increase.
My best personal example is the place where I play Magic the Gathering increasing the price of packs to adjust for the processing fees (and struggling to do that for fear of sending the regulars back to buying packs online, which would shutter their business permanently).
Go buy something at your local No Name Shoppe and compare it to what you were paying 3 years ago. Adjust for inflation. Be shocked by the random ~3-4% cost increase.
My best personal example is the place where I play Magic the Gathering increasing the price of packs to adjust for the processing fees (and struggling to do that for fear of sending the regulars back to buying packs online, which would shutter their business permanently).