Popular Media
‘Reverse Robin Hood’ is a myth and capping interchange fees would hurt the poor
The Hill
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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.