Losing money to credit card transaction fees is actually a huge problem the average person does not know about. The problem is that these credit card companies charge a percentage based on each transaction which screws over the merchant in two ways. One, it is inflation resistant. Two, Visa/Mastercard do not pass savings and efficiencies onto the client, they pocket the difference.

Just as an illustration, if a merchant's profit margin on an item is 10% and the cc fees are 3%, they've lost a third of their profit on that sale.