The banks will make up for this loss of revenue somehow. Maybe they will spread it out among customers that have not been late. That appears to be the democratic way.
As Telcos discovered, they only advertise a base price. If you ask for the full price you'll owe, they wont tell to you. You'd need to be a lawyer and read the 15 pages of fine print to figure it out. Then, you get stuck in a 2yr contract, get the first bill, and discover all sorts of things like the "Regulatory Recovery Fee" and the "Emergency Surcharge"
Source? While I agree the advertising doesn't prominently display the all-in price, claiming that you need to be a legal professional to figure it out is a bit hyperbolic.
I’ve never understood why people always argue that we have to allow bullshit fees and overcharging “or else” when there’s clearly plenty of examples of existing waste and inefficiency in every business. Large monopolistic businesses especially so.
The US has more than 4,500 banks. Most of them offer credit cards.
By your logic you'd also argue that search engines aren't a monopoly because there's tens of them.
Visa and Mastercard are the dominant processors. Amex is far behind (but it is both a processor and a bank).
But they don’t set card fees and interest rates. The bank that issues cards does.
Capitalone is not a credit processor. It’s a bank. Along with Chase, B of A, Citi, US Bank, Wells Fargo, Barclays and hundreds of credit unions.
None of the banks has more than a 20% market share. #1, Chase, has an 18% market share. The top 3 only make up 55% of the market.
https://www.bankrate.com/finance/credit-cards/credit-card-ma...
It’s highly fragmented and very competitive. It is in no way a monopoly.