European customers aren't liable for fraudulent charges either, I don't really understand your logic here.
Everyone pays the price of fraud and it's probably one major reason that explains high interchange fees in the US.
Everyone pays the price of fraud and it's probably one major reason that explains high interchange fees in the US.
The EU caps the interchange fee, does that mean the networks exit the business because they can't make money? No. Does it mean they've eliminated fraud? No. But it does mean they can't pay Karen 5% "reward" so they don't. There aren't any cards like that in Europe. For everybody else it makes the system cheaper.
Yes, rewards cards are paid for with interchange fees, but that doesn’t mean that’s the only thing they pay for. Most people pay more interest than they earn in fees per year anyways shrug