Re:The Fed Is Behind the Capital One/Discover Merger
by astrange on Thursday February 22, 2024 @11:09PM
(#39476861)
Merchants don't automatically pass through all costs any more than they'd pass through all savings if all their customers moved to debit cards. It depends who has the pricing power.
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Re:The Fed Is Behind the Capital One/Discover Merger
by AnthonyMouse on Friday February 23, 2024 @04:37AM
(#39478686)
Not really, because the "tax" applies to competitors as well. In an uncompetitive industry the merchant has pricing power and can just raise the price, true. But in a competitive industry, margins are thin and they have to raise the price or they go out of business, and so do their competitors, which is what allows them to.