I didn't realize banks charged their customers .50/transaction to use a debit card. It's been so long since I've used one. It used to be they only charged a fee if you took cash out at a machine that wasn't theirs. Is this all banks, or does it depend on the type account you have?
I gotta play devil's advocate here though..... why should the merchant absorb the cost for the customer's convenience of not paying with cash? Especially if it is one of these small sales like the TV ads are pushing; like paying for fast food.
It is not uncommon among small businesses to discuss an extra "markup" to cover CC processing fees, then turn around and give the markup as a discount to someone paying with cash. It is illegal to do it the other way, charge an extra 3% (or so) to anyone using a CC for a purchase.
Sometimes there is very little markup and all those CC fees add up at the end of the month.
Unless your Wally World who happens to be their own processing co, too, so the money just goes in a circle.