The merchants decide if they are going to accept the card or not. Of course the banks are going to steer you towards the option that makes the most in fees for them.
Many stores issue their own cards and offer discounts if you shop with the store card.
So we play the game. Every year or so, my wife or I get a "new" JCPenny card or some other card to get the 5, 10 or 20% off when opening a new account. We pay it off in full and often close it later. Then the other one opens an account.
The bottom line is it's not some sort of conspiracy, it's an attempt to attract business and drive revenue. The stores think you'll shop with them more once you have their card. Visa and MasterCard both sell the convenience to both card holders and merchants who accept the cards. Neither has to hand cash or checks with the cards, regardless if they are debit or credit. So while the merchant may pay $1 or $3 on a $100 transaction, they don't have to process checks, or handle cash on that transaction saving on labor in the back office.
People are genuinely ignorant about MasterCard and Visa. As the article said, neither company issues cards. They market products and provide a network for their member banks to process transactions.
For most transactions, neither MC or Visa approve the transaction. The transaction has to go to the issuing bank for approval. In rare occassions, MC (and perhaps Visa) would stand in for approvals, but typically only for small transactions if the member bank couldn't approve it.
The other thing you might notice is that both MC and Visa were not public companies until the last few years. MC was one of my customers years ago, and they were an association of member banks. So they didn't turn a profit. They had to spend everything. The 401(k) match was pretty nice. Something like 217%.
Now both have gone public and are working to make profits.
But most folks don't realize that it's the banks who issue MC and Visa cards, not MC and Visa themselves. I hear folks blaming MC and Visa for the big bills, the big interest, etc, when the truth is it's the issuing bank.
Whatever you use, debit or credit, don't spend more than you make, pay your bill in full each month when it comes to credit, and don't do the sorts of things that generate fees. I.E. pay your bill on time, don't go over your credit limit, etc.
No one forces a merchant or a consumer to use or take the cards. If it were so bad for merchants, then they can simply refuse and take only cash and checks.
If it's so bad for the consumer, then they can stop using their cards and pay with cash or check.
It really is that simple for 99.44% of the cases. For the other 0.56% of the time you need to rent a car, use your CREDIT card and pay it in full when you get the bill.
I've yet to see a store that doesn't take cash.
PS, I rarely use debit, I use credit cards that pay me cash back. The only place I use my debit card is at the ATM to get cash, and then typically only at my bank's ATM. However, my bank will refund ATM charges from other banks, so there really is no reason for me to seek out a specific ATM.
It's not all bad out there. Pay your bills, stash some money, and banks will work WITH you, not against you.
