UPDATE: Settlement reached: merchants now have option to reject certain credit cards

Thanks for sharing. I wonder if the awards programs are doomed. Certainly for those of us who earn more points or miles through purchases than through flights this is a game changer.

I have to wonder if the smaller merchants could survive if they were picky about which cards to accept. I don't carry cash or even my debit card anymore, so if you want my business you'll need to accept my rewards card. If not, I'll move on to the next store.

I'm kind of with you on this one, Allan. I don't like it when merchants do this. I'd rather that they just raise their prices a little bit to make up for the credit card fees. That's what I would expect them to do.

The Perkins here in town is now making you pay more for your meal if you pay with a credit card. So, I've decided not to go there anymore and I let them know that. There are other and better restaurants in town that I'd rather go to anyway, so it was kind of a no-brainer. The only reason I went is because my grandkids like going. But they like the other places too, so they will survive. 😂

I do find it interesting that the U.S. seems to be traveling a bit backwards on this, while at the same time European merchants are moving more and more towards cards and no cash.

And Laurel, I agree, especially since most people who have reward credit cards are probably the ones spending the most money. Not accepting those would definitely cause a downturn in their business, I think. Of course, I don't know that for sure, but I think it's a reasonable assumption

The question really is....are merchants ready to lose sales because of this? Does a1/10th of 1% additional fee actually going to have merchants give up potential sales. (That's 10 cents on a $100 purchase.)

I use reward cards to gain points for free flights, free hotel rooms, and other travel benefits. If they go away, my travel will definitely change.

Thanks for explaining how those rewards are funded. I always wondered.

Mardee, I respect your opinion. But you could look at it the other way - with one price, people who pay cash are subsidizing the people who use cards. This was once required by the card issuers in the US, but no longer. There's been a discount for cash in some countries for a long time.

I was struck by the combination of the two statements:

"I'd rather that they just raise their prices a little bit to make up for the credit card fees."

"The Perkins here in town is now making you pay more for your meal if you pay with a credit card. So, I've decided not to go there anymore and I let them know that. "

I pay at local small places (restaurants and others) that have two prices, one for cash and one for paying with a card. It costs them more for the card so why shouldn't they pass that charge onto people who want to use one?

edit: I suppose it depends on how much business they do for each. If it's almost all credit card then a separate price for cash wouldn't seem to fit. And if it's almost all credit cards a separate fee to use a card smacks of gouging.

"people who pay cash are subsidizing the people who use cards"

Not sure about the US, but in many other countries cash is on the way out - for example, when I'm in my home country of Australia I almost never carry any cash at all. Ditto the UK. Australia actually allows merchants to apply a surcharge for card, but is abolishing this as of 2026 because virtually everyone pays with card, and we're all fed up with being charged extra. Accepting cash also has a cost in terms of security, staff time and bank charges. I'm certainly seeing more and more "Cash not accepted" signs around.

We ran into places in New Zealand that would not accept cash, and added a small fee, about 2% for those that used a credit card?!

A couple days ago we celebrated my husband's birthday at a midrange St. Paul restaurant. I believe the total was just under $100. They accessed about a 2% fee on credit card use. That bugged me a bit, because most will not have that amount in cash. Just add a bit more to the menu prices.

Simon, I agree, and that's the problem. Every other place in the world is going towards credit card usage, and yet the United States is going backwards. And I do think it's a backwards movement to mandate cash. Why would I want to use a dirty old bill when I can just use my phone to access credit? Am I willing to pay more for the privilege? No, because this has been a part of our economy for a long time.

And Jules, I think that's a problem too. The merchants are mandating this extra fee for credit card usage, but they're not letting customers know about it, at least not in a noticeable way. I didn't even realize it was happening at Perkins until the second time I was there and I looked at my bill and realized that there was an extra fee added on. So I asked them about it.

If you're going to do something like that, then promote it. Put a big sign in the window saying "If you want a 2% discount, then pay cash. If you want to pay more, use your credit card." Don't try and sneak it in, but that's what many are doing.

Mardee, agree, and some gas stations have been doing this for a while and making it quite clear that there is a cash discount (or credit card surcharge)

It costs them more for the card so why shouldn't they pass that charge onto people who want to use one?

Because it's 2025.

I think the credit card fees can be onerous for a small business. A friend who has a service business just gave up on taking credit cards as the fees and ancillary costs were too much. Hasn't hurt his business all that much and he is a lot less stressed.
Another local bakery has a cash price and a credit card price and that seems to work well for them.

I just returned from Japan and plenty of small businesses don't take credit cards, especially when you get out of Tokyo and the main tourist areas. Heck, even in Tokyo I found places that were cash only. There is a hefty cost for the convenience of cards that is not always obvious.

I have seen many restaurants that charge a tad more if a credit card is used. Sometimes I use the card and pay the higher amount, sometimes I pay with cash, and sometimes I go elsewhere. I do agree that the pricing difference should be transparent. Make the policy known--don't "hide" it on the bill.

"There is a hefty cost for the convenience of cards that is not always obvious"

Just like there's a cost to accepting cash. Big businesses pay for secure transit, small business pay for staff time and bank fees for cash deposits. Surely businesses can treat card charges like any other business cost and build it into their pricing and margin calculations?

Certainly in many countries you'd go out of business pretty quickly if you didn't take card (or in Asia, QR code payments systems like WeChatPay).

It's been said that the airlines make more money from credit card partnerships than ticket sales. Without rewards they'll lose credit card customers. How will they survive?

The US has always seemed to be behind the rest of the world when it comes to cards.

On the other hand, the US now has a penny shortage. Some places are now rounding up or down if you pay by cash. I was at Home Depot yesterday. They had a sign asking you to pay by card otherwise use exact change if paying by cash due to the penny shortage.

I'm not sure that I'd consider the status of banking/credit cards in the U.S., relative to the rest of the world, as "behind". When we traveled to New Zealand, the locals were making it sound like a WISE card was everything, and completely necessary. We couldn't see why we needed it and spent our 5 weeks using credit cards and a very small amount of cash. In the end, we determined that the WISE card would have cost us more to use than our credit cards. I was told by quite a few locals that no fee credit cards, and bank credit cards without foreign transaction fees were pretty nonexistent which would explain why WISE seems to benefit them but not so much those of us with U.S. credit cards?

Our dentist used to give a 5% discount for cash/check, but they've discontinued that, so now I use our credit card with rewards.

It's been almost 40 years since I worked in banking, but back then cash took a lot of processing time for both the business and the bank. I know that time is shorter now because banks have money counting machines, but I would hope the customer would want to balance before they head to the bank with a deposit. I vividly remember one of the local grocers walking the two blocks to the bank daily with the deposit bag under his jacket looking scared to death, and hoping he didn't get robbed on the way (he didn't).

I'm not a fan of using currency.

My norm now is to use ApplePay with a card that gives me some cash-shopping credit each month. But if I am eating or shopping at a small family-owned shop, I will pay cash so they aren’t losing that small percentage.

In Europe I usually use ApplePay, but do the same situations above. I’ve had some gelato shops in particular smile appreciation when I’m handlng them cash. But I guess I don’t know if that’s because I’m using cash or speaking in Italian.

To quote/paraphrase Mark Cuban " 20% of a watermelon is more than 100% of a grape"

Merchants are going to have to choose between making a sale at a few cents less profit or no sale at all when the (annoyed) customer walks away.

"WISE card would have cost us more to use than our credit cards. I was told by quite a few locals that no fee credit cards, and bank credit cards without foreign transaction fees were pretty nonexistent?"

It does vary quite a lot from country to country. Not familiar with NZ, but certainly many Australian banks do charge international transaction fees, hence the enthusiasm for Wise and Revolut. But in Australia that is changing- I have a fee free HSBC account, for example. Here in Singapore banks don't charge international fees for card use, and their foreign rates are close to or sometimes better than Wise. And I still get rewards points.

So while Wise has lots of fans, it is worth doing the maths. Your normal credit card may be better.

Any comparison around between what the US credit card duopoly of VISA/MASTERCARD charges merchants versus the rest of the World? I used to hear that the fees were considerably less in Europe and that's why small payments by card (micro payments) were a lot more common in those countries.

And does VISA/etc charge different fees depending on the country?

After a gap of nearly a year, a few days ago I returned to a hair salon I've used for decades. There is now a sign on the counter announcing a 3.75% surcharge for using a credit card. I was shocked. It's a downtown Washington DC salon, so not an inexpensive place. I doubt if they offer any service for women that costs less than $60 (it could be higher), and I struggle to believe they pay as much as 3.75% in card fees. It looks like a blatant money grab. I will not be returning there.

And does VISA/etc charge different fees depending on the country?

I wouldn't be surprised if that was the case. At least in the US, each state may regulate the fees a credit card exchange may charge. In some states it's actually illegal to impose a credit card surcharge. https://merchantcostconsulting.com/lower-credit-card-processing-fees/credit-card-surcharge-laws-by-state/

I think businesses would be wiser to set their prices assuming people will be using a credit card and offer a discount for cash or debit card. People hate surcharges but love discounts even if the net result is the same.

My car repair shop started charging an additional 3% to use a credit card. I use my debit card to avoid the extra fee, but hate the idea of a surcharge. Had they raised their prices by 3%, I would not have even noticed. When they pointed out a 3% surcharge, it just annoyed me.

"...I struggle to believe they pay as much as 3.75% in card fees."

https://www.nerdwallet.com/business/software/learn/credit-card-processing-fees

[snip]
Credit card processing fees vary by payment processor and pricing structure, but in general, they're 1.5% to 3.5% of the transaction.

edit: though Forbes claims a maximum of 4%. It seems to vary quite a bit.

https://www.forbes.com/advisor/business/credit-card-processing-fees/

[snip]
These sub-fees add up to the about 1.5% to 4% your credit card processing provider charges you per transaction.

There is now a sign on the counter announcing a 3.75% surcharge for using a credit card........... It looks like a blatant money grab.
I will not be returning there.

The more folks who do like acraven the faster the fees will go away ( or become invisible)

"I struggle to believe they pay as much as 3.75% in card fees. It looks like a blatant money grab"

In Australia it's typically 1-1.5%. Smaller merchants pay more than bigger ones though.

Our dentist used to give a 5% discount for cash/check...

My dentist does that too (or at least did in the past). That is something I don't mind. First, it's a discount, not a surcharge (yes, I know—semantics, but still), and second they gave me plenty of notice. I was told when I scheduled the appointment that if I wanted to pay in cash, I would get a 5% discount. After the procedures, I was able to write a check and did not have to carry around cash.

That's different than walking into a restaurant, sitting down to eat, and then at the end being given a bill that says you're being charged extra if you use a credit card. I think that is unacceptable.

On the other hand, the US now has a penny shortage. Some places are now rounding up or down if you pay by cash. I was at Home Depot yesterday. They had a sign asking you to pay by card otherwise use exact change if paying by cash due to the penny shortage.

There is no penny shortage. There are 114 billion pennies in circulation. The problem is the public does not actually use them and most people do not pay in exact change. It's the merchants that must have pennies on hand because of non-exact change cash paying customers. Once the customer has the pennies they get tossed in the car's ash tray or cup holder, in the coin jar at home or in the couch cushions and not actively used.

It makes no sense to spend 3 cents to mint a 1 cent coin. As far as rounding, well Belgium, Finland, Ireland, Italy, the Netherlands, and Slovakia, round cash transactions - it's not hard.

On card fees, 1-3% can be significant for small businesses and low margins operations.
https://www.fool.com/money/research/average-credit-card-processing-fees-costs-america/

Local convenience store chain KwikTrip eliminated pennies in June, and they always round down. Buy a $3.99 item, give them $4 in cash and you get a nickel change.

Almost all restaurants now add 3% to the bill if paying with a credit card.

Every other place in the world is going towards credit card usage, and yet the United States is going backwards.

I don't know about other places, but in France most consumers just have (Visa- or Mastercard-affiliated) debit cards.

As to gas stations charging a higher percentage add-on for people paying with cards instead of cash, that has been so for decades. I can remember my granddad charging a premium at his Texaco when people wanted to use a credit card.

trump stopped the production of pennies at the U.S. mint.

Banking systems vary widely from country to country which is not all that surprising. It doesn't necessarily mean one country is more/less advanced, they are just different. Maybe there are more safeguards for debit cards elsewhere, but I would not use my ATM/debit cards for purchases. There are more safeguards on credit cards. Debit cards are connected to your bank account (obviously), so once a hacker has the account info, they can drain the account.

I only occasionally encounter a fee for credit card use at gas stations and restaurants in my area (Twin Cities of MN). I see it more when we travel.

It makes no sense to spend 3 cents to mint a 1 cent coin. As far as
rounding, well Belgium, Finland, Ireland, Italy, the Netherlands, and
Slovakia, round cash transactions - it's not hard.

Canada, Australia and New Zealand also round up or down and don't mint pennies anymore.

I've been to hotels in Rome and Venice that offered discounts if I paid cash. In Venice it was significant and saved me several hundred dollars. Italy being Italy I assumed it had more to do with hiding it from the taxman than saving credit card fees.

I am pretty sure I am an outlier but I don't think these rebate cards are all that great a deal.

The airlines in particular give away miles like candy which is great until you go to redeem them. Sure you can find decent deals but it takes a huge amount of effort. I flew to Japan earlier this year and it took over 300,000 miles to find fights with a manageable schedule.

I don't pay interest on my card but out of curiosity I checked it out - 29% interest rate. Seems sort of obscene to me and I feel bad for anyone who falls behind and gets stuck paying that. There is a good reason that the airlines and banks push these cards so heavily - they are making a fortune off them.

Fortunately we have a choice when making purchases. I like to give myself a latte and sweet treat once a week or so. I can go to Starbuck's, pay $10 or $15 with my card and get a 10 to 15 miles. Or I can go to a local cafe which publishes its prices for both cash or card. Paying with cash, I get a better price, the money goes to a local business and I forego 10 or so miles. I am happy to do that . Not everyone's cup of tea so to speak but it works for me.

Credit card rewards can be pretty substantial. You just have to pick the right card. I just got $1500 cash back on my AAA Visa. That card does not have an annual fee, does have some insurance protection like for car rentals, and I have no idea what the interest rate is, because I don't pay it. We ALWAYS ALWAYS ALWAYS pay off our credit cards every month.

I am careful which of my cards I use for individual purchases.

Just the cash back from buying gas at Costco with a Costco card more than covers my yearly membership cost.

I have had a Nordstrom VISA for many years. I like the store's customer service as well as the customer service I get on the card. Lately, I have been using it less in favor of cards that give me cash back. However, just recently, Nordstrom started to offer a percentage off for purchases with their VISA at their stores. They've been adding other benefits. I'm sure this is to help them compete with other cards.

I've become less enamored with my DELTA VISA. I keep it because I break even on it with the free checked bags, etc. I also use the flight credit and the hotel credits. However, I use it only for flight purchases and then only up to the amount needed to get the flight credit.

In a few months, we are going to Australia. I used skymiles for my ticket (flight credits for my husband) A five day hotel stay in Melbourne was paid for with some Chase points. I got $200 Delta hotel credits for other hotels, and I used a $50 hotel credit from Chase. Granted, I had to be careful where the credits are used, some redemptions are better than others.

I'm careful when I use my skymiles. More and more are saving Delta miles to use for deals. I don't pay more than about 80,000 miles for anywhere in Europe, I've gone to New Zealand for 32,500 miles and now, 72,000 to Australia. I do not find it hard to use the miles, I am fortunate to have some flexibility in travel dates.

I do agree with the idea of buying local when possible. I typically do not buy coffee out. But, when we travel, we avoid Starbucks, etc., in favor of local places. Plus, some of the local places, particularly in the PNW (Pacific Northwest), are adorable!

Thank you to RobertH and VAP for digging up links for merchants' card fees. The top end is higher than I was assuming.

Almost all restaurants now add 3% to the bill if paying with a credit
card.

That must have begun after I moved here 3 years ago because ive nrver seen it in my life.

There's been a discount for cash in some countries for a long time.

Which countries so i know where to carry extra cash.

"The top end is higher than I was assuming."

And that may not be the "top end". It seems to vary by State (and Country) as well.

https://www.nerdwallet.com/business/software/learn/credit-card-processing-fees

For Stripe:

[snip]
4.4% plus 30 cents for international card transactions.

[snip]
Small businesses can pass credit card fees to customers by implementing a cash discount program or credit card surcharge. With a cash discount program, customers receive a small discount for choosing to pay with cash instead of card. Credit card surcharges are similar in that the business tacks an extra fee on purchases made with a card.

In both cases, businesses need to follow specific rules and regulations. For example, credit card surcharge programs aren’t legal in Connecticut, Massachusetts and Puerto Rico. Additionally, remember to consider your customer base and how you’ll roll out the program.

The cost of doing business in cash is not zero.

Transporting cash to/ from the bank is not free.. Plus whatever cost the bank imposes for dealing with the cash.

The credit card company fee is easy for the merchant to see. The cost for dealing with cash is more of a 'hidden' cost.
I wonder how many of the smaller merchants have done the detailed analysis to see what the true cost of handling cash is

I am pretty sure I am an outlier but I don't think these rebate cards
are all that great a deal.

It can depend on the card, the rewards, how much you use your card, etc. Out of curiosity I looked at my history for this year with my airline card. I currently have the dollar equivalent of $3100 and earned about $650 over the past month. In May I cashed in some points for 2 tickets for an up coming trip to London. Usually I cash in about $500 per trip to begin the cost down. We don't check bags, but if I did the first bags would be free. The cards for my wife and I cost $190/year so it works for us. I keep meaning to check with my bank to see if I qualify for a business card which increases my points earning power and gives me automatic Silver status which gives me zone 2 boarding privileges and 4 lounge vouchers per year (admittedly I'm not sold on the benefit of line passes). The business card would only cost me an extra $50/ year due 2 cards. My card and airline has no restrictions on the use of points in terms of blackout dates. It's very simple in the app, whenever I book a flight a window pops up asking how many points I'd like to use.

"I wonder how many of the smaller merchants have done the detailed analysis to see what the true cost of handling cash is "

The low end, probably not. The owner(s) probably do the drive through Bank on the way home. They do a lot of things that aren't "on the books".

Hard to say when they start figuring it in.

"It's very simple in the app, whenever I book a flight a window pops up asking how many points I'd like to use. "

I'm one of the people (software engineer) who build the apps. I would use very few of them willingly.

"Maybe there are more safeguards for debit cards elsewhere, but I would not use my ATM/debit cards for purchases"

Maybe this is the case in the US. In Australia there is zero account holder liability for fradulent debit transactions as long as there's no negligence by the account holder (such as writing down the PIN and storing with the card). Hence debit cards are very popular.

Simon, I was thinking the same. I looked it up and about 2/3 the value of all transactions in the UK are purchased on debit cards. It is so strange to hear someone say they would never use debit cards for purchases when here that is what most of us use for everything (including when travelling)! I think credit cards are quite a North American phenomenon (not that they don't exist other places, just their popularity is not quite at the same level elsewhere).

Umm I'll just point out that in the US debit cards are used for payments more than credit cards.

In Hungary you need a bank account to survive and every bank account comes with a debit card and its used more than cash probably at a ratio of close to 50 to 1.

I have two bank accountsat the same bank, one with my monthly allowance in it and no debit card. One tied to a debit card that I move cash to once a week or when i need it. I use that debit card every day.

I'm one of the people (software engineer) who build the apps. I would
use very few of them willingly.

Why?

Interesting how different countries favour different payment methods.

In Canada;

Credit cards 33%
Debit cards 30%
E transfer 14%
Cash 11%
Cheque or prepaid card 1%

Personally, the majority of mine is done via credit card and E-transfer. I don’t carry cash or my debit card anymore.

Edit to add: I do carry cash and my debit card when travelling, just in case.

Is this throughout the world or just the US?

If all of this took place in a US court, why would it have any validation in any other country?

Uh, no.

In the US Debit cards carry much less fraud protection than credit cards.

https://www.michigan.gov/consumerprotection/protect-yourself/consumer-alerts/shopping/credit-card-v-debit-card-know-the-difference

[snip]
Federal protections are greater for purchases made on credit.

Thanks to the Fair Credit Billing Act (FCBA), liability for unauthorized charges made with a credit card is limited to $50 for both in-person and online credit transactions, but you need to report the incident within 60 days.

However, as noted above, most credit cards offer zero-fraud liability, meaning you won’t be on the hook for a penny. Most credit card issuers will put the fraudulent charge on hold while they conduct an investigation, so you won’t be out the money in the interim.

Debit cards are a different story. Because the money you spend comes out of your bank account, your liability depends on how quickly the fraudulent charges are reported. If reported within two business days, your maximum loss will be $50; more than two business days but less than 60 calendar days, your maximum loss will be $500; and after 60 calendar days, your liability will be 100% of the loss, possibly more if money in other accounts are linked to your debit account.

When you do report fraud you may have to wait days or weeks to get a refund for a fraudulent transaction made with your card, even if your bank account was drained.

And even clearer:

https://www.bankrate.com/banking/checking/risky-places-to-use-debit-card/

[snip]
Debit card fraud costs financial institutions and consumers over $1 billion annually. Unlike credit cards protected by the Fair Credit Billing Act, debit cards fall under the Electronic Funds Transfer Act, which offers less consumer protection. While you can use your debit card almost anywhere, certain locations (like gas stations, bars, restaurants and online retailers) significantly increase your risk of becoming a fraud victim.

"Why?"

Too many reasons to get into here.

Biggest:

1. Data mining who you are, who you contact, etc. Doesn't bother a lot of people.

2. They screw up the apps all the time and leave "holes" that bad people can take advantage of.

3. others

In the U.S. debit cards are used more than credit cards??

I'm not sure that is true. Unless you are thinking about credit cards bills on autopay and the payment comes from the bank account.

I don't know anyone in the U.S. that would pay with a debit card except those that do not qualify for a credit card. Even my credit union advises people pay by credit card over a debit card.

Similar to when we traveled to New Zealand and were told that we "must" get WISE. We didn't, it would not have been in our best interest. Banking systems differ widely by country. At least in the larger countries, none are more "advanced" than others, they are just different. So when folks travel, other than finding out the prevalence of ATMs or cash usage, folks need to get their information from travelers from their own country that have made similar trips.

In the U.S. we don't typically do our business via bank transfers, WISE is not prevalent for domestic use, and using a debit card is more risky than a credit card.

"I don't know anyone in the U.S. that would pay with a debit card except those that do not qualify for a credit card."

There are several businesses that require either their credit card or a debit card, like Costco. I use debit cards there and at other small businesses that I don't want to burden with the high card fee.

Others, like Kroger that bought Fred's, I'll use the credit card for a pack of gum.

Is this throughout the world or just the US? If all of this took place in a US court, why would it have any validation in any other country?

Frank, no, it does not apply to countries outside the U.S. This is strictly for U.S. merchants, which could be a good thing because a lot of my reward cards are used for hotels and trains and such in Europe. For what it's worth, Europe has its own set of regulations that have affected credit card fees paid by merchants, which are enforced by the European Commission. And that's why European merchants are able to pay lower fees.

Per wiki:

In the United States, the fee averages approximately 2% of transaction
value.[2] In the EU, interchange fees are capped to 0.3% of the
transaction for credit cards and to 0.2% for debit cards, while there
is no cap for corporate cards.[3]

"...no, it does not apply to countries outside the U.S. "

Though, does anyone know what the distribution of the transactions for those programs are, US vs Europe (vs others)? If they get most of their profit from the (cancelling) US programs that might affect the others.

@RobertH Any Costco I've been to accepts any credit card except AMEX and Discover.

In the U.S. debit cards are used more than credit cards??
I'm not sure that is true.

https://www.spglobal.com/market-intelligence/en/news-insights/research/debit-surpasses-credit-as-consumers-preferred-payment-card

From the article-

Debit use has generally been trending upward, but this year, we saw it significantly outpace credit cards as consumers' most preferred payment card. While various factors drive debit preference, younger consumers are using debit more than in the past, with security/privacy as major factors influencing card choice...While debit use has been trending upward over the years, we saw it surpass credit as consumers' most preferred payment card this year. In fact, it was nearly a direct flip from last year: 56.2% of consumers preferred debit as their primary payment card (39.5% preferred credit)...Last year, 40.2% of consumers preferred debit as their primary payment card (54.6% preferred credit),..

Note the graph "US Primary Payment Card By Annual Household Income"
At $75K household income and below debit card is primary, and above that credit is primary. But even at $150-$250K debit use is still one third.

Also note that younger generations are using debit as their primary cards more often.

I don't know anyone in the U.S. that would pay with a debit card except those that do not qualify for a credit card.

Really, you don't know anyone in the US?

"...no, it does not apply to countries outside the U.S. "

Though, does anyone know what the distribution of the transactions for those programs are, US vs Europe (vs others)? If they get most of their profit from the (cancelling) US programs that might affect the others.

I'm not sure what you are asking, Robert. Europe and the US have very different agreements with Visa and MC, and I don't see how any fallback or issues from the new settlement will affect agreements outside the US (like the one they have with the EC in Europe).

I asked AI: What does the categorical imperative mean? If one applied it to transaction fees for credit cards what would it recommend?

The Categorical Imperative is Immanuel Kant's supreme principle of
morality. It is an absolute and unconditional moral law that must be
obeyed in all circumstances by all rational beings, regardless of
their desires or the potential consequences.
{Omitted section for brevity]
Applying the categorical imperative to credit card fees requires
examining the principle behind the fee structure using these
formulations.

Universalizability: Charging transaction fees to cover costs and make
a profit can be universalized if the fees are transparently disclosed.
Customers, acting as rational agents, can then choose to accept the
fee or use an alternative payment method. However, secretly adding a
fee without disclosure would fail this test, as universalizing such a
practice would erode trust and undermine transparent pricing.

Humanity as an End: A transparent fee does not treat the customer as a
mere means. The customer is a rational participant in a voluntary
transaction, able to consent to the terms. An undisclosed fee,
conversely, would treat the customer as a means to the merchant's
profit by manipulating them through lack of information, violating
their autonomy.

Based on the categorical imperative, credit card transaction fees must
be clearly and prominently disclosed. Hidden or deceptive fees would
likely be seen as undermining the principles of honesty and respect
for human autonomy necessary for moral action. A justifiable fee is
one that is openly and universally applicable.

So, yeah, score one for Europe. Let's travel there!

Happy travels.

P.S. Costco and Sam's Club switched their credit card policies back in 2016. They have confidential sweetheart deals that smaller merchants would die for.

Interesting, VAP, I stand corrected on Debit card use. I see it seems to depend quite a bit on age and income. Apparently, I live a sheltered life, the only person I know that uses a debit card for transactions is my daughter who is a graduate student and wouldn't qualify for a credit card. Interestingly her debit card was hacked and her account completely drained, which was quite a problem since it happened on a Friday, her bank was closed and she lives in Hawaii, a quarter of the world away from where her family lives. On Monday when she could contact her credit union, after a weekend without money, she was told they "thought" she'd get all her money back. Which she did.

When we've had problems with a credit card, we are able to reach someone 24 hours and could be overnighted new cards, and there was no concern about whether we'd get all our money back.

If they get most of their profit from the (cancelling) US programs that might affect the others.

I don't think points and rewards on credit cards are really marketed in Europe. I've never had a conversation with an actual real life person about credit card points and acquiring them. I'm not the best person to ask. I haven't had a credit card since my late teens or early 20's. I think I maxed one out on Nike Air Max, Chipie jeans and suchlike, as I was wont to do back then, then never felt the need for one after.

It's illegal for businesses to charge a fee for credit or debit card usage to the consumer in the UK and EU.

I had to check, but consumer protections on debit card fraud are pretty good. You're likely to be reimbursed fairly promptly according to Visa. For disputes up to £30 000, the "chargeback" scheme exists, though that isn't covered in law specifically, unlike credit cards which are covered by consumer credit legislation (section 75).

I've never used WISE payments. It's always been pretty easy to transfer between one bank and another here, instantaneous these days with the "Faster Payments System". Payments to banks in foreign countries is something I've been able to use my own bank account for when I've needed to do it. I've been using Paypal since I joined eBay about 25 (almost?) years ago. I use that over a debit card online sometimes as it's a convenient couple of clicks and it's one less place my card number is lurking in a seller's database.

It sounds like the credit providers and banks in the US have it worked out. Rinse your captive market (merchants) for every penny, while using what you skin off them to provide the consumer with marketing fluff and frivolities in the form of points, which in turn the merchants are charging the consumers for with card surcharges at the point of payment. I'm sure it suits them just fine that debit cards have very little consumer protection in legislation. More credit accounts if someone wants the convenience of using a card safely, more dollars for Visa and Mastercard et al.

There are several businesses that require either their credit card or a debit card, like Costco.

As David mentioned Costco changed their payment requirements quite a few years ago. They now accept all Visa cards, including their own Citi Visa. And as Jules pointed out, that is one that is definitely worth having especially if you buy gas. You get 5% back on Costco gas, and 4% back on any other gas or EV charging up to $7,000 spend per year.

https://customerservice.costco.com/app/answers/answer_view/a_id/719/~/what-payment-methods-are-accepted-at-costco%3F

In my home country of Australia, debit cards make up 50% of transactions, credit cards 25% and the remainder is cash and other forms such as bank transfers, PayID (bank to bank instant transfer via cell phone app) etc.

Back when my kids were young and I wasn't working, we had credit cards and credit card debt. We used our debit cards all the time so as to not incur any more cc debt than we we had to -- typically we used the CC for an unexpected large purchase that we didn't have the cash for, like new tires, a hospital bill etc. None of our cards were points/miles cards; I think I had a cash back Discover for a while. I never used a CC for small everyday purchases.

Now that we are able to pay our credit cards in full every month, I use my United Visa via Google Pay for literally everything unless there is a fee. I have an Delta Amex too, but since AMEX is not widely accepted in Europe I don't have it in Google Pay.

The only time I use a debit is my HSA debit card.

I don't have a non-points CC. I guess if I encounter a merchant that won't accept my miles cards, I would use my debit. I'm not getting another CC unless refusal of points/miles cards becomes widespread.

Purchases here such as at food markets, restaurants, hotels, Amtrak tickets, retail outlets, etc I use most often the credit card, sometimes cash. I don't use the BofA debit card at all or certainly do not carry one. I carry only the 3 credit cards and cash.