Comment by compiler-guy

The way these deals are structured (including things like requiring a merchant to accept all cards), the business accepting the card cannot use price (or anything else, really) to signal to the person picking which card to use. The incentives are all from the issuer to the consumer in the form of various kickbacks.

This means that the issuer can manipulate the consumer into doing things bad for the business, and the business has no way to respond to the very high fees it is charged.