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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.
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.