Federal Reserve Bank of Boston says merchant fees and reward programs take from those who have the least and give to those who have the most.  Credit cards programs have grown to a point where there is a self-feeding cycle:

1. Merchants must accept credit cards cause consumers expect to be able to use them.

2. Credit card company pays consumers with a hefty slice of the transaction fee as a reward for using the credit card.  Credit card company keeps the remainder.

3. Consumer wants to use credit card even more!  As usage goes up, merchants have less bargaining power and fees can get hiked up.

Whenever I’m at a small business where cash could be reasonably used given purchase size, I try to do that instead of credit card.  I’m sure they appreciate it (or at least I would if I were them).