For sure the banks make good money, but the question is whether or not a company that is new at it, would be able to make a profit on 3%. I submit that it is a difficult task, and a new company would struggle. Not saying it's impossible, just that it's hard.

It's more that U.S. companies have various rewards programs (travel points to cash back). One of my cards gets 2% back on nearly everything, and 5% back on their quarterly promotions. I tend to use it for most of may day to day spending, and try to pay it off every month. That's why the merchant fees are so high... much less an extent to fraud handling.