How would consumers who traditionally pay using cash potentially benefit from an interchange fee cap?

Question

Rogelio Coffey

Business

17 December, 00:33

How would consumers who traditionally pay using cash potentially benefit from an interchange fee cap?

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Answers (1)

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Giovanny Davies · Answer 1

The only way I can think of is that the interchange fee cap would reduce the cost of doing business for the merchant, so they might reduce their prices slightly for all customers as a result. Of course many merchants will just keep the prices the same and be happy for the extra profit in which case the consumer doesn't benefit - just the merchant.