I agree, and the rewards system gives consumers a false idea that they are getting a net benefit. The new game is charging a 3.99% service charge to the customer to pay with card, which takes the pressure off the vendor and allows the processor to take a larger cut. In some places, like tourist traps, you don't have any other options. The ATM in town might charge $3.99 withdrawal fees as well.

I was told by an insider that the reason why emv+pin is not used in the US is because Visa/MC actually profit from fraud. If fraud were cut considerably, you could argue that the network is only providing 5-10¢ of value per transaction, and cut their rates with legislation.

If we went to a system like PIX in Brazil, and dropped rewards, we could do away with most of the industry. People would only use credit cards if they needed credit.

Maybe we'll see some legislation in the future.