You're wrong, the rewards (cash back) is real.
At some philosophical level you're correct. Sure, the merchant is being charged extra fees and the cash back is less than that.
But pragmatically, the merchant already included that cost in the price of the item so it is what it is.
You buy that $5 latte cash, it costs you $5. You buy it with a debit card it costs you $5.
I buy it with a credit card it costs me $5 but I get 10 cents back at the end of the month.
You're wrong, the rewards (cash back) is real.
At some philosophical level you're correct. Sure, the merchant is being charged extra fees and the cash back is less than that.
But pragmatically, the merchant already included that cost in the price of the item so it is what it is.
You buy that $5 latte cash, it costs you $5. You buy it with a debit card it costs you $5.
I buy it with a credit card it costs me $5 but I get 10 cents back at the end of the month.