Why Do Card Issuers Charge Proportional Fees?
A working paper titled "Why Do Card Issuers Charge Proportional Fees?" 
by Oz Shy and Zhu Wang of the Federal Reserve Bank of Kansas City explains why payment card companies charge consumers and merchants fees which are proportional to the transaction values instead of charging a fixed per-transaction fee. "Our theory shows that, even in the absence of any cost considerations, card companies earn much higher profit when they charge proportional fees."
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