Here's what the owner of a music store says:
"Cards are able to offer 1% cash back and other perks to their customers for one simple reason, that money is coming straight from the coffers of businesses where the transactions take place. My store is paying that 1% back to you. I think that's unfair to me, that I have to pay you that 1% back for something the card is offering."
Higher fees for customer reward programs caused another retailer interviewed to make the decision to stop accepting American Express or Discover Cards:
"We are basically paying for their perks. What I'm charged to process these cards is absolutely ridiculous."