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Smaller community banks and credit unions would still get the same amount of merchant fee income that they are getting now.
Consumer advocate Klaus Bartosch, who is campaigning for a national ban on surcharges, told the inquiry the average merchant fee for MasterCard and Visa was 0.81%.
An operator of popular bars and restaurants in Sydney put a surcharge on American Express users until the credit card company cut its merchant fee.
It is estimated that for each ticket booked with a credit card, airlines are charged a merchant fee ranging from 2% to 3%, or around $10 to $15 per ticket, roughly $3 billion for the world's airlines.
This means that AmEx, which closed 2003 with $38.5 billion in total managed loans, can grow its card usage and merchant fee revenue without the added burden of rate-sensitive lending.
Removing the merchant fee will appeal to merchants who handle micro transactions, as fees can add up pretty quickly when you take into account PayPal's $0.30 flat fee.
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Those merchant fees finance his perks, and if those fees fall, he's got problems.
After all, there are no limits on credit card merchant fees (at least not yet).
It's also worried sick about the possibility of earning much less from merchant fees.
Visa's merchant fees are about 2percentt, compared with 3.5percentt for American Express.
Those one-time payments cost Verizon money since it must pay merchant fees to card companies and others.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com