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The butcher, the baker and the mechanic pay 35% income tax each. The original $100 turned into -$5 at the end.

That income tax then goes to build roads and educate their children, at least to some degree. The profits to visa and Mastercard go to the shareholders.

Visa and Mastercard certainly don't work for free, but the largest part of the interchange goes right back into the pockets of the customer, in the form of rewards points.

At least in the US, credit cards really largely an implicit surcharge on cash payers: Paying by card, you effectively pay 97%-99% in 4-8 weeks; with cash, you pay 100% immediately.

And a surcharge on cc users who don't get points (largely those with worse credit).

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