> They are taking a percentage point or two on the entire consumer payment system.

Visa/MC make about 0.1-0.13% of each transaction, not a 1-2%. The rest of the interchange (the vast majority) goes to the issuing bank.

Doesn't it depend on the country? Payments with Visa and MasterCard work very differently in various countires. In Poland you can pay 0.01€ with credit card and the seller will happily oblige. In Germany even few Euros they prefer to be paid in cash.