if the credit card merchant was able to extract 2-3% for using their network, what makes you think that a free debit card with low/zero cost wouldn't also be owned by the same credit card merchants and force the same fees to maintain their monopoly?
Europe has similar laws capping the fees on both credit cards and debit cards. We could do the same and it would work better for everyone except the credit card companies.
Because right now debit card purchases don’t have a transaction fee while credit cards do. I just had two recent purchases where the vendor charged a 3% surcharge for credit cards but would do the transaction by debit card free.
It is an example that greed is everywhere. Not only among card issuers but also among merchants. The moment merchant find a socially accepted way to extract extra they will do it. Similar to tip screens on square terminals in all takeout places. Costs nothing to ask, generates some additional revenue.
Cash handling isn't free, but a digital transfer that doesn't have rewards is obviously cheaper than a credit card.