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Actually, you're wrong. The merchants will usually not charge the transaction fee to the customers.
Alas they do in all cases, some obvious and some not so obvious.
Some may say it up front on a sign and request that extra % as Fuzzy mentioned.
Others it is as simple as part of their business accounting.
All businesses that aren't going broke yesterday, will know their costs.
It is simply yet another cost to cover in their price.