If you think 3% is too much, there are plenty of other payment processors... the thing is, most of that 3% is not set by the processor (or kept by them) but is set by the card networks. It is the card networks that should be targeted by antitrust laws.

If there anyone could make an App Store, then we would have a better idea of what the market rate for app stores should be.

> If you think 3% is too much, there are plenty of other payment processors...

The things is, there's really not.

There's two: Visa and Mastercard.

In the US there's also American Express and Discover (afaik), but those aren't accepted everywhere (to the point that it was a joke in Futurama).

But We’ve actually seen this happen in the United States before. The Durbin Amendment put a cap on debit card transactions of 21 cents plus 0.05% (although an additional 1¢ can be added to the cap if certain security requirements are met). After this Amendment was put into practice we saw two things:

1) Rewards earning debit cards were almost entirely phased out.

2) Prices did not drop as a result.

The reason the EU even capped payment processing fee's was because of this duopoly that was strangling the market. Quite poignant.

And it's 0.2% on debit cards. :)