Cards do not compete with ACH or FedNow. Cards are intentionally reversible and non-final. They serve a different need and use case.
People want insurance products, they want rewards, they want chargebacks and they want to borrow up front - and so do merchants. It increases average ticket sizes and it saves them from having to deal with cash. This system didn't get foisted on anyone, it was built to meet the needs of both buyers and sellers.
In Europe where interchange is regulated, credit cards are capped at 0.3% interchange but don't come with those features.
People want insurance products, they want rewards, they want chargebacks and they want to borrow up front - and so do merchants. It increases average ticket sizes and it saves them from having to deal with cash. This system didn't get foisted on anyone, it was built to meet the needs of both buyers and sellers.
In Europe where interchange is regulated, credit cards are capped at 0.3% interchange but don't come with those features.