OP-ED: 'Reverse Robin Hood' is a myth and capping interchange fees would hurt the poor - International Center for Law & Economics

OP-ED: ‘Reverse Robin Hood’ is a myth and capping interchange fees would hurt the poor

The Hill – ICLE Senior Scholar Julian Morris and Associate Director of Legal Research Ben Sperry published an op-ed in The Hill debunking the “reverse Robin Hood” fallacy that reward credit cards rob from the poor to give to the rich. The full piece is available here.

The claim that rewards credit cards benefit the rich at the expense of the poor has been trotted out many times by those who want to cap the fees charged to merchants by card issuers. Though the myth of this so-called “reverse Robin Hood” effect has been debunked repeatedly, it continues to resurface from the grave. This is troubling for various reasons—not least because capping interchange fees would actually harm the poor the most.