A sensible response is for national regulators to cap credit card interchange rate. Banks are free to offer more generous rewards, just they can't fund it via the retailer.
The EU's cap is 0.3%, Australia's was 0.55%.
By comparison, typical credit card interchange rates in the US are 2%+.
The EU's cap is 0.3%, Australia's was 0.55%.
By comparison, typical credit card interchange rates in the US are 2%+.