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Over the next several days, two banks, Visa or Mastercard, and multiple intermediaries will communicate back and forth until money is moved from your bank to your grocer’s bank.
And each bank and middleman charges a fee for their role. It’s charged to the merchant, and your credit card is seemingly free to use.
Credit card fees are 2% or more of nearly pure profit.
The results can be absurd: banks and credit card issuers making more from a restaurant’s burgers, a bookstores books, or a corner store’s groceries than the store owners and employees.
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