The Transaction Mafia

The Rip-Off via Swipe Fees

Hidden in plain sight in nearly every transaction is the “interchange fee.” Typically around 2% per transaction in the US, these fees funnel from consumers to Visa/Mastercard—then to banks and issuers.

While masked at checkout, these fees are absorbed by vendors—so they inevitably pass the cost back to us, inflating the true price of our consumption.

52.86% Profit Margins—Bold or Brazen?

In a recent US Senate hearing, Visa and Mastercard representatives confirmed profit margins exceeding 50%—a figure that shocked even seasoned lawmakers. That's not a business margin; that's overt extraction of value.

Visa’s operating margin in North America was a staggering 83% in 2022, generating around $8 billion from debit fees alone

Monopoly Play: Skimming Billions from Every Economy

The US Department of Justice alleges Visa is a monopolist in the debit network space—using “exclusionary agreements” that penalise merchants for using rivals and skim billions yearly, raising the cost of almost everything

Over $3 trillion in transactions flow through Visa each quarter, and over 60% of all US debit transactions run on their network, funneling over $7 billion annually in fees

Higher Prices, Lower Competition

Visa’s dominance forces merchants—and consumers—to pay. As DOJ puts it:

“[Visa’s] unlawful conduct affects not just the price of one thing—but the price of nearly everything.”

It’s not just about card hyped convenience—it’s a systemic extraction that quietly enriches corporate middlemen.

Bitcoin’s Transparent, Fair Alternative

Contrast this with Bitcoin:

• Fee transparency: Network fees are clearly visible and under full control of the user.
• Lower costs: Instead of chronically high fixed margins, Bitcoin fees are market-driven and minimal.
• Purposeful distribution: Fees reward miners who validate transactions—supporting network security and decentralisation.

Instead of linearly inflating consumer prices, Bitcoin places value directly into the protocol’s ecosystem.

Why It Matters

• Economics: Hidden fees inflate costs for goods and services, reducing real consumer value.
• Lack of transparency: Consumers are unaware they're subsidising corporate profits with every purchase.
• Broken incentives: Visa/Mastercard profit not through innovation or service, but through structural dominance.

Bitcoin offers a cleaner alternative—fees aren’t hidden, profits aren’t monopolistic, and wealth stays within the network.

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Bottom line: Every tap, swipe, or contactless payment is subsidising profit-skimming corporations. Bitcoin offers a transparent, egalitarian alternative that refuses to inflate prices. Ready for true financial autonomy?