Oh yes. You underestimate the power of a competitor. If you're in business playing by the rules, and the buy down the road is cutting corners, enabling him to undercut you.....you're going to turn him in.
At my store once we realized the scope of creditcard fees on a business that operates on transactions in the $8-$20 range, we raised all of our prices by 50 cents. This credit card non-sense should be passed on to the consumer so it is visible, it is ridiculous. Banks charge the business for taking their card from a customer, and then the banks turn around and charge the customer for interest on the debt they just accumulated. Total crap.
Big businesses create their own creditcards to bypass the fee, like Target's Visa Card that earns you 5% cash back, etc.. Small businesses end up both footing the bill and looking like jerks for having higher prices!
Credit card companies are private property, they have no obligation to make your life/job easier, and as far as I know, there is no legal restriction (whether IP or special favors) that prohibit competitors. Oh, and it's not illegal to accept cash only either, which many have went ahead and did, even if it means they have to install an ATM on their site.
Whether you pay directly or indirectly, you still pay. And whether or not the credit card company even chooses to pass the cost on to the retailer or not, there is still a cost inherent in the transaction that the credit card company will have to recoup at some point.